What is a Refinancing & Exit Bridging Loan?

Refinancing & Exit bridge finance is designed to help borrowers who have taken out bridging finance with another lender but for unforeseen circumstances have been unable to exit the facility.

This type of bridging loan provides you with the time needed to arrange longer-term finance; obtain planning permission; complete light refurbishments; sell the property or land.

Who Can Apply for Refinance Bridging?

If you are the legal property owner you can apply for refinancing and exit bridging finance. The property or land needs to be in the UK and finance is accessible to both UK and Foreign Nationals.

Borrowing is available to Individuals; Trading Ltd Companies; Special Purpose Vehicle (SPV); and Offshore Borrowing Vehicles.

What Can Bridging Loan Refinancing be Used For?

The purpose of bridging loan refinancing is to pay off a current one.

Bridging loan refinancing is commonly used to:

• Repay the loan you currently have in place
• To provide you with more time to complete outstanding work on a property
• To allow you more time to complete the sale of a property

bridging finance

The Benefits of Refinancing a Bridging Loan

Refinancing bridging loans have several advantages. First and foremost, it gives borrowers time to transition from a short-term, high-interest loan to a more stable, long-term financing option, such as a mortgage. By doing so, borrowers can potentially secure lower interest rates, resulting in reduced monthly payments and long-term savings. Refinancing can also provide borrowers with an opportunity to consolidate multiple loans or debts into a single, manageable payment, simplifying their financial obligations.

Another benefit of refinancing bridging loans is the potential for improved cash flow management. Bridging loan refinancing gives borrowers the opportunity to extend the repayment duration. This can reduce the monthly financial burden and provide them with greater flexibility when managing their cash flow. This is particularly advantageous for individuals or businesses who may be experiencing temporary cash constraints during the bridging loan period.

Furthermore, refinancing can help borrowers unlock the equity in their property. If the value of the property has increased since the initial purchase, borrowers may be eligible for a larger loan amount when refinancing.

While refinancing a bridging loan will provide you with benefits, there are important considerations to keep in mind. One crucial factor is the timing of the refinancing process. It is advisable to begin exploring refinancing options well in advance to ensure a seamless transition from the bridging loan to your new financing arrangement. Starting the process early allows you to compare offers from different lenders, negotiate favourable terms, and avoid any potential pitfalls that may arise during the transition.

Additionally, borrowers should carefully evaluate the costs associated with refinancing. While refinancing can lead to long-term savings, it is essential to consider any fees, charges, or penalties that may be incurred during the process. These can include application fees, valuation fees, legal fees, and early repayment penalties, among others. Conducting a comprehensive cost-benefit analysis will help borrowers determine if the potential savings outweigh the expenses associated with refinancing.

Bridging Loan Calculator

Try our bridging loan calculator here. Simply fill out the information and click “Continue”.

There are only three steps involved in the process and it should only take around five minutes to complete!

We’ll do the rest and contact you back with a bridging loan quote as soon as possible.

How a Short-Term Bridging Loan Can Help

Time to Arrange
Longer-Term Finance

There are times when your original bridging finance exit via a commercial mortgage or BTL Mortgage completion is delayed. When this happens the existing bridging lender will look to work with you and extend terms. There are however occasions when the existing bridging lender won’t extend terms and you will need to refinance onto another bridging product so as to avoid lender penalties.

Planning Permission

Property or land is often purchased by a property developer or investor with the intention of obtaining planning permission. There are times when the necessary reports and planning application can take longer to be approved than anticipated. If your existing bridging finance lender is not prepared to extend terms you will need to refinance to an alternative bridging lender to avoid lender financial penalties.

Delays With

Bridging finance is often obtained by property developers and investors when they purchase properties that are not mortgageable and require refurbishment. Sometime the refurbishments are delayed, and your existing bridging lender won’t extend terms. When this happens, you will need to refinance with an alternative bridging finance lender.

Delayed Sale of
Property or Land

When property or land is purchased with the intention of selling once it’s been refurbished or planning permission has been granted, there can be delays with the sales process. If your existing bridging lender won’t modify terms you can refinance to an alternative bridging finance lender.

What Type Of Residential Property Is Acceptable?

  • Residential
  • Commercial
  • Land
  • Business (Tax & Cash-Flow)
  • Auction
  • Farming & Agricultural
auction business farming land refinancing residential

Benefits of Bridging Finance

The main benefit of bridging finance is the speed at which funds can be made available to the borrower. A lending decision can be agreed within a couple of hours of us receiving the initial enquiry and funds made available within days. In a competitive and fast-moving property market this allows the borrower to act quickly and secure the investment property.

Refinancing & Exit Bridging Basic Criteria
Loan To Value Up to 80%
Loans Available 1st Charge
Loans Size £50,000 to £25,000,000
Terms 1 Month to 36 Months
Adverse Credit Acceptable
Rates From 0.45%

Why Use Pyxis Capital?

The Team at Pyxis Capital have extensive knowledge of bridging finance and take time to understand a client’s needs and requirements.

You will have a single point of contact from start to finish and will also be provided with direct contact details for one of our Company Directors.

Most importantly you won’t be left with the finding an Exit Strategy from your bridging finance facility. As this is something that will be researched on day one and if possible, agreed in principle with a long-term lender.