Refinance Bridging Loan

Re-bridging loans in any circumstances

Refinance bridging loans are loans taken out by the borrower to replace an existing finance facility. This can be with the same lender, or a different lender.

Refinancing using another bridging loan is often referred to as a re-bridging loan and borrowers may need to do this for several reasons. Generally, a refinance bridging loan is needed when a client’s exit strategy has fallen through. They apply for a new bridging loan so they can pay off their current lender. This provides enough time to arrange a new exit strategy, should your initial strategy have fallen through. This could be to:

Arrange traditional long-term finance
Finish a refurbishment project
Find a new buyer.

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Refinance with confidence

Use our bridging finance calculator to receive a detailed quote. This will outline your potential interest, charges and other costs associated with our loans – so your client will know what to expect from the start.

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Refinance Bridging Loans

What you need to know:

What’s the difference between refinancing, re-bridging and a second charge?What are the important things to consider before enquiring about a re-bridging loan?Can you extend a bridge loan refinance?Can you only refinance once?Can you re-apply for a re-bridge?

Refinancing:

A refinance bridging loan is when you reach the end of your term and you’re looking to exit your short-term finance. Generally, this is done by using a long-term financial solution, such as a mortgage.

Re-bridging loan:

Re-bridging is like refinancing except, instead of a long-term solutions, you use bridging to pay off the initial bridging loan. There are many reasons why you may do this:

To exit a current bridge loan for one with a cheaper rate
To cover the collapse of an exit strategy so you can plan a new one

This allows you to continue utilising your bridge loan funding or cover the gap whilst waiting for your initial exit strategy to come into play, should it have faced delays.

Second charge loan:

A second charge bridging loan is when a property already has a loan [charge] against it as security. This could be a mortgage of a form of alternative finance. You may wish to add a second charge to raise additional finance.

A second charge deems the lender as second priority in terms of repayment, upon the sale of the asset for example. This can put the second charge lender at risk, meaning rates are often higher for second charge finance.

You may wish to secure a second charge, for example, to raise additional funds to renovate or convert a property or to put money into an existing or new business.

When it comes to re-bridging or refinancing your existing bridging loan, there is one key factor to consider. Your exit strategy. Bridging lenders like MFS, will often want to know how you intend to exit your bridging loan when it comes to re-financing.

With MFS, our underwriters decide this on a case-by-case basis, at their discretion. Being able to apply for a bridging loan extension will depend on a variety of factors:

1) Your lender

Some lenders will not allow an extension to a bridging loan, preferring instead to initiate extra charges or put the borrower into default.

2) The bridging product

Specific bridging loan products may have different term lengths, which may limit your opportunity to extend a bridging loan if it is already set for the longest term available.

You can refinance more than once. A high majority of clients often refinance when they’re in need of additional funds. We can help you refinance more than once, whether you’re looking to raise additional funds to expand your business or start a renovation project.

In terms of re-bridging loans, you can only re-bridge a particular loan with a new lender once. Re-bridging is usually to repay a lender due to an exit strategy falling through or looking for a lender with better service or cheaper rates. A potential new lender may need to view your current bridge loan to uncover why you need to re-bridge. This is simply to help prevent an exit strategy falling through, whilst protecting both yourself and the lender. You would then potentially be able to re-bridge with a new lender again in the future, but this would be another new facility.

Contact us

Speak to us on the phone, via chat or email about your case, however complex it might be. We have a friendly, dediciated team and one of our underwriters will be happy to help you with your query. We will try our best to say yes to you, instead of finding a reason to say no.

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Thank you Olivia and Imogen for helping us assist with the completion of two Buy To Let Mortgages. On to the next one! Kind Regards, Aakash

Accelerated Finance

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Really excited to be working with MFS. Underwriter was busy throughout the application and it was difficult to get her on the phone, however our BDM Oli Watts was available throughout the process and that made it more efficient for us. If we were unable to get an update form UW Oli would get the info for us regularly.

Tobi

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MFS, Thank you for giving all my clients an amazing service, Jemma, especially, she has been very professional and efficient since she joined MFS. She is a definitely a great asset to the company. Jemma, thank you and well done for all your assistance!

Maria

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Outstanding work on an urgent completion with a previous broker and lender failing to deliver. The team at MFS including Jeanne, Olivia, Kieron and others stepped up and ensured the client completed and avoided losing their deposit on a time sensitive matter. Nice work and onto the next few.

Kevin

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Working with MFS is an absolute pleasure. They are always in communication and so everything they can to deliver a seamless transaction within a short time and minimum fuss. All in all a very professional outfit. Working with Jemima Hyes and her team has been great.

Ripon Mahmood

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Exceptional service from a professional, diligent and creative team. In particular - a special thanks to Sonal who effortlessly simplified the complexity of the matter, maintained clear lines of communication and ensured overall transactional efficiency.

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Very tricky case, handled expertly by Jemma and the team, even though interest rates increased in the middle of the application, MFS ensured that any increase was as minimal as possible. Top effort and will be using MFS again

Craig

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As a mortgage broker, I have dealt with MFS several times and all successfully progress to completion on time. I have to mention that the BDM Zahira and the Underwriter Jeanne have been working really hard to make sure my urgent deals completed within the deadline and updated me several times a day so I am always aware whats going on. Top services.

Sabrina

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Very Satisfied with their service so far.

Anthony Lai

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Five Star Service Another bride company let me down with an unreasonable underwriter view, which cost my client two weeks, a valuation, and solicitor fees. My client needs to close the deal within three weeks. MFS has given me hope and taken the human thinking approach to overcome all the obstacles. Craig, Wayne, and Will provided excellent support (all calls were answered the same day). A big thanks go out to them. The whole team deserves five stars. Easy Financial Services LTD

AJIT SINGH

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I've had the pleasure of dealing with MFS in particular Imogen and Kieron. On each occassion from the initial phone call to discuss the nature of the case and sending across the enquiry form they have been proactive and quick to get the indicative terms issued. They are knowledgable and very helpful.

Amit Patel, Trinity Finance

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I have dealt with MFS for a long time as a Commercial Financial Broker. A great company to deal for all your short term funding needs. The speed, professionalism, communication and friendliness of staff are just great. I have dealt recently with Jemma who is always ready to help and sort out hurdles. Kieron and Richard are a few who i have dealt who brilliant. Also Paresh who is the CEO of MFS is a great person to deal. MFS always exceed expectations.

Victor

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Quality service and staff always willing to find solutions.

Danire

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We've had nothing but great service from Zahira and Kieron whilst working with MFS. It's a pleasure to work with a common sense lender who are efficient, dedicated, commercially minded and easy to communicate with. Thank you, and keep up the good work!

Chris Oatway

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First time I had introduced a client to MFS. MFS offer a freindly and efficient service, they are very competative and I will defenitley use them again. My client is very happy I introduced MFS to them.

John

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I have known Kieron and MFS for circa 4 years. Nothing is ever too much of a problem for Kieron and he is very quick to respond to my enquiries. A few months ago we completed two very tricky transactions in excess of a million pounds of Bridging and Kieron sorted out every question and query that we came across. Kieron’s ability to quickly refer up the line was also extremely helpful and he has access to the decision makers who without doubt have a 'can-do' attitude! I run a team of 5 Commercial brokers and I have recommended MFS to them on a number of occasions, so expect a plentiful supply of new business! Thank you to all at MFS, you are a great bunch!

Andy Elley

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Excellent experience once again with Sonal - quick response and follow up and clear instructions as to the required details and likely timing - all very straightforward

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