Refinance Bridging Loan

Refinance Bridging Loan

From suffering the losses of a delayed property sale, or simply seeking more favourable terms, a refinancing bridge loan can provide the flexibility you need. 

That is why at MS Lending Group, we understand that time is critical and circumstances can change quickly.

What Is a Refinancing Bridging Loan?

A refinancing bridging loan is a short-term financial solution used to repay an existing bridging loan. 

So why may you need a bridging loan to replace an existing bridging loan? 

Ultimately, life happens, and there are instances wherein an initial finance plan, such as a sale or longer-term mortgage, gets delayed or even falls through.

That is why, it is common to see borrowers seeking refinancing bridge loans when their initial loan term is coming to an end and they are not yet in a position to exit via sale or long-term refinance. 

These loans provide extra time and room to get back on track without defaulting on repayments or putting the property or exit plan at risk.

What Can Refinancing Bridging Loans Be Used For?

Re-bridging loans are a choice for many for a multitude of reasons, there can be complicated issues that require more time on your side, or there can be more simple reasoning like securing a better deal for long term financing. 

Nonetheless, some of the most common scenarios that benefit from utilising a refinancing bridging loan include, but aren’t limited to:

• Repaying a soon-expiring bridging loan
• Raising additional funds to complete renovation or development work that may have been delayed
• Seeking or refinancing on property for better terms or lower interest rates longer term
• Resolving delays in property chains or mortgage applications

By accessing a refinancing bridge loan, you’re able to avoid unnecessary penalties and retain the safety of your exit strategy, rather than being rushed into an unfavourable sale or finance arrangement.

Common Property Types That Benefit from Refinance Bridging Loans

At MS Lending Group, our refinance bridging loans cover a wide variety of residential and commercial property types, including, but not limited to:

• Buy-to-let properties
• Residential investment properties
• Mixed-use premises
• Commercial properties
• HMOs 
• Land 

If you are looking to refinance a loan secured against commercial property, our Commercial Bridging Finance page provides more detailed information about our specialist lending options.

Considerations During Refinancing Bridging Loan Applications

The process of refinancing a bridging loan is similar to that of getting the bridging loan in the first instance, but there are some things to consider…

Consider Your Eligibility

The good news is, borrowers with existing bridging loans can apply for refinancing, and are likely accepted if there is sufficient equity in the property and a realistic exit strategy still in place all the while. 

This is due to the fact that at MS Lending Group, we look at every application on a case by case basis, so even if you have experienced delays with your original project, we will look at your case individually and offer all the flexibility that we can.

Consider Your Time Frame 

Timing is critical, so you need to ensure you refinance at the right time to avoid unnecessary rushes and stress.

We would advise borrowers to start the refinancing process at least 1 month  before their existing loan is due to expire; but ultimately, the earlier you start the process, the likelihood of more options is on your side.

Consider Your Affordability

Consider why you’re refinancing and ensure that you’re in a position to repay and still, have a strong exit strategy. 

Be prepared that re-bridging loans can come with arrangement fees, valuation costs, and legal fees, again similar to an initial bridging loan application.

However, these costs may be offset by better terms in the long term, reduced interest rates, and of course avoiding default penalties on your current bridging loan.

Apply Today with Ms Lending Group  

If you’re approaching the end of a bridging loan term and need additional capital fast, re-bridging loans could be the solution you’re looking for.

At MS Lending Group, we’re responsive and provide lending that supports property investors and developers at every stage.

Contact our team today to explore your refinancing bridge loan options.

What people are asking about refinance bridging loans…

“My bridging loan term ends in three weeks and the sale I was relying on has fallen through. Can I refinance onto another bridging loan before I default?”

The good news, yes, you may be able to refinance onto another bridging loan if your original exit strategy has been delayed. 

This is commonly referred to as a refinancing bridge or a refinancing bridge loan and can provide additional time to complete your planned exit.

Property sales can sometimes take longer than expected due to market conditions, we understand this as a highly experienced lender; so if your bridging loan term is approaching its end date, it is important to explore your options early rather than waiting until the deadline has passed.

A refinance bridge replaces your existing facility with a new short-term loan, allowing you to repay the original lender while giving you more time to sell the property, secure long-term finance or complete any outstanding requirements.

Remember though, before approving a refinance bridging loan, lenders will usually assess why the original exit was delayed and whether there is a realistic plan for repayment. 

“My development’s overrun and I’ve run out of time on my current bridge. Can I get a refinance bridging loan that also raises extra capital to finish the works?”

Yes, with the right lender you can get a refinance bridging loan that can sometimes be used to replace an existing bridge while also releasing additional funds to complete development or refurbishment works.

Property projects do not always progress exactly as planned, we see this a lot and understand the issues that arise during the process, that being said delays can extend a development timeline beyond the original bridging loan term.

If this circumstance does arise, a refinance bridging loan from us at MS Lending Group could allow you to restructure the existing finance and therefore raise additional capital required to complete the project. 

Do note however that the ability to raise extra funds will depend on the available equity in the property and whether the overall borrowing remains suitable for the project.

“I’m on an expensive bridge I took out in a rush, and my exit is still months away. Can I re-bridge onto better terms to bring the cost down while I wait?”

Yes, re-bridging loans can sometimes be used to replace an existing bridging facility when a borrower needs more time or wants to restructure their finances.

Many investors use bridging loans to secure opportunities fast, particularly when speed is more important than arranging a long-term finance solution immediately. 

A rebridging loan can provide an opportunity to review the current borrowing structure, potentially offering a longer term or different terms that better match the revised exit timeline.

However, refinancing should not be an afterthought; there are terms that will change and the financial state of your investment will matter. That being said, while reducing short-term pressure can be beneficial, borrowers should consider the overall cost of extending finance, including interest and arrangement fees.