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We have extensive facilities available for individuals and businesses looking to replace an existing bridging loan with a new one.

Re-bridging Facilities available

  • New bridging loan to repay an existing facility

  • Arrange an extension of an existing facility

Going over term on a bridging loan is potentially very serious – we are experts in advising of potential options and getting things put back on track.

If you are over term or worried that you may go over term on a bridging loan, there are two important things to consider in detail:

  1. Why have you gone over term, or why might you go over term?

  2. What is your lender’s position about you going over term, what action are they going to take?

Why have or why are you going to go over term?

It is important to look at why you have, or potentially might go over your loan term. Something clearly has gone wrong or not according to plan.

Possible problems with this scenario could be:

  1. The work has taken longer than planned and the property is still not in a mortgageable condition. However, it will be finished in a couple of months and then a mortgage can be put in place. An extra 4 months is therefore required to resolve the matter out.

  2. There have been additional costs and the work can’t be finished within the original budget. You therefore need to raise additional funds to finish the work and then re-mortgage.

What is your bridging lender’s position about you going over term?

How they behave will depend on:

  1. Who the lender is 

  2. What they have been told

Your current lender’s position can range from:

Not being too worried – in which case they may leave your current facility in place, not increase your interest rate or charge any additional fees.

What are your potential options

1. Remain with your existing lender

Typically, they may charge you an extension or rearrangement fee. These can be expensive and are often for a term much shorter than the original loan. Therefore, it won’t be long until you are in the same situation again.

2. Look for an alternative facility

You may be able to move your loan to an alternative facility that is much cheaper, whilst also offering a longer term, allowing you extra time to sort out any problems.