Refinance Bridge

What is a Refinance Bridge

A Refinance Bridge is a form of short-term loan that you can use to quickly raise cash from unencumbered or underleveraged property. It provided fast access to capital that can be used for a deposit on another property, to pay off existing finance, or any other business opportunity that requires funding:

Bridging loans are commonly used when:

• Raising finance quickly to use towards another property purchase
• Refinancing an existing short-term loan that is about to expire, such as a previous bridging loan
• Raising cash against unencumbered or underleveraged assets to put towards a business project
• Completing time-sensitive property transactions
• Expanding investment portfolios without delays

Key Benefits

• Speed: Raise additional cash or refinance an existing loan in as little as two weeks
• Leverage: Use an existing property to achieve 100% financing of an additional property.
• Time: Refinancing an original bridging loan can buy you the time you need to position your business, development or portfolio to a place where it will qualify for longer term financing.
• Move on to the next project sooner: Use the capital tied up in your existing properties to fund your next investment without delay.
• Flexibility: Interest can be rolled up/retained (no repayments) or serviced via monthly payments and there are normally no early repayment charges. Plus, with property as security, there is less reliance on credit scoring to be accepted.

Who is Eligible?

Limited Companies, PLCs, Sole Traders, Private Individuals, SIPPS and Partnerships are all able to use development exit finance. Lenders will look at several factors when assessing suitability and price including:

• The reason for the refinance
• The use of the funds
• The exit strategy – how the funds will be repaid