How Do I Pay Back A Bridging Loan?

When applying for a bridging loan, you need to plan an exit from the facility – a way of paying back the outstanding balance in full on the date agreed.

The exits most used by borrowers include:

• the sale of the property on which security was taken
• the securing of a buy-to-let or HMO mortgage (following any renovation work if any)
• the sale of property to a third party either as a whole or of some or all of the stand-alone units created during renovation, conversion, or development
• the arranging of another loan like a occupier mortgage or a buy-to-let mortgage the proceeds of which are used to repay your funder
• revenue from a third party source or a client (for example, payment of a large invoice)
• expected proceeds from an inheritance
• maturing of an insurance policy
• selling of property owned by you or your business