What refinancing a bridging loan costs
Refinancing a bridging loan is priced like the underlying product: a new bridge, a mortgage, or development exit finance. What changes the price most is how close the case is to its exit, and whether it is regulated or unregulated.
On a £400,000 bridge reaching the end of its term with the sale six months out, a rebridge of around £420,000 (covering redemption plus roll-up interest and fees) buys the time needed, repaid when the sale or remortgage completes.
Four things that move your price
Loan to value
A refinance is priced against the property's current value, so a case that has grown in value or paid down debt usually prices better.
Term
The nearer the new exit, the less interest accrues. Most refinances run one to twelve months, longer for development exit finance.
Security position
A first charge prices better than a second charge behind an existing lender.
Strength of the exit
A clear, evidenced new exit, a sale under offer, a mortgage offer in hand, keeps pricing keen. A vague exit does the opposite.
Rates & costs: FAQs
What are the rates on refinancing a bridging loan?
Rates are quoted as a monthly interest rate on the new facility, in line with the underlying product: a rebridge, a mortgage, or development exit finance. We source terms from a wide lender panel for each case.
How is the interest charged?
Interest is charged monthly on the amount drawn. On most refinances it is rolled up and repaid from the new exit, so there is nothing to service month to month while the sale or remortgage completes.
What fees are there?
Expect an arrangement fee on the new facility, charged as a percentage of the loan. There may be valuation and legal costs, and any early repayment charge on the existing lender you are leaving. We set out all costs before you commit.
Is refinancing a bridging loan expensive?
It carries its own cost on top of what you have already paid, so it is not free. Set against the alternative, a forced sale or default charges from the existing lender, it is usually the cheaper route when the exit has simply been delayed.
Get a firm quote for your refinance
Send us the existing loan, why the exit has slipped, and your target timeframe and we will come back with indicative terms.