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 refinding bridging loan include, but aren’t limited to:
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Repaying a soon-expiring bridging loan
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Raising additional funds to complete renovation or development work that may have been delayed
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Seeking or refinancing on property for better terms or lower interest rates longer term
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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:
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…
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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
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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.
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Consider Your Affordability
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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 loan.
MAKE AN APPLICATION
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.
NO MINIMUM LOAN SIZE
MAX LOAN £3 MILLION
12 MONTHS AS STANDARD
18 MONTHS ON REQUEST
2ND CHARGES AVAILABLE
NO VALUATION
ON LOANS UP TO £500,000 ON RESIDENTIAL COMMERCIAL AND SEMI-COMMERCIAL PURCHASES.
DESKTOP VALUATION
ON LOANS UP TO £2 MILLION.
SUBJECT TO INTERNAL REVIEW
RESPONSIVE, RELIABLE & FLEXIBLE
NO Minimum Bridge Term • 2% Arrangement Fee • Exit Fee - 1 Month Interest