Bridging loan exit strategies
A bridge is short-term by design, so how you repay it matters as much as the security. This is what a strong exit looks like.
Every bridging loan is repaid from a defined event — the exit. Because the term is short, a clear, realistic exit is usually the difference between a transaction that completes smoothly and one that runs into trouble at the end of the term. It is the first thing a good lender wants to understand.
The main routes
The three most common exits
- Sale — of the security property, or of another asset in the portfolio, releasing the funds to repay the loan
- Refinance — onto a term facility or buy-to-let mortgage once the property or the borrower qualifies for longer-term lending
- Project completion — works, letting or planning that unlocks either a sale or the longer-term lender
Most transactions rely on one of these. Some have a primary exit and a credible fallback, which is stronger still.
What good looks like
What makes an exit strong
An exit is convincing when it is realistic on the timescale of the loan and does not depend on everything going perfectly. In practice that means:
- It fits comfortably inside the term, with margin to spare
- It is evidenced — a refinance in principle, comparable sale values, a lettings position or planning status
- The numbers work: the sale price or refinance amount clearly clears the loan and costs
- There is a sensible fallback if the primary route slips
How we assess it
We look at the exit first
Because we lend our own capital and decide directly, we can take a commercial view of an exit rather than applying a rigid checklist. We assess the exit alongside the quality of the security, the borrower and the rationale for the transaction.
If your project has no income until completion, we will discuss the most suitable repayment structure rather than forcing a shape that does not fit. And if the exit is not yet strong enough, we would rather say so at the outset than at the end of the term.
For the terms that apply, see the lending criteria, or read how company bridging works.
Get started
Have a transaction and an exit in mind?
Tell us the deal and how you plan to repay it. Speak directly with the decision-maker.