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