Rebridge Finance
Rebridge finance provides a structured solution when an existing bridge loan is nearing maturity. A new facility can refinance the current lender and provide essential additional time.
What Is Rebridge Finance?
A refinance refers to replacing an existing bridge loan with a new bridging facility.
This is typically required when:
- The original term is ending
- The exit strategy is delayed
- Sales have not completed
- Refinance approval is pending
- Development timelines have shifted
Why Rebridge Instead of Extend?
Existing lenders may charge:
- Extension fees
- Refinance fees
- Default interest margins
- Increased monthly rates
A refinance allows a fresh facility to redeem the existing lender before cost escalation occurs.
Worked Example – £1.5m Rebridge
A borrower with a £1.5m 6-month bridge loan was approaching maturity.
The existing lender proposed:
- 3% refinance fee
- 2% per month increased interest
A new rebridge facility was structured to redeem the existing lender prior to escalation.
The replacement facility was arranged at a rate below the borrower’s original bridge pricing, providing improved cashflow stability and additional time to execute the exit strategy.
Illustrative example only. Terms subject to underwriting and valuation.
Eligibility Factors
- Remaining equity in the property
- Current market value
- Strength of exit plan
- Reason for delay
You can read more about structured bridging finance here.
Frequently Asked Questions
Is rebridge finance the same as an extension?
No. Rebridge finance involves a new lender replacing the existing bridge loan.
Can a refinance reduce monthly costs?
Depending on structure and terms, refinancing may improve cashflow compared to default pricing.
How quickly can rebridge complete?
Completion depends on valuation and legal readiness. In many cases, 1-3 weeks may be achievable.
Need to Rebridge?
If your bridge loan is nearing expiry, early discussion may reduce exposure to default interest and additional fees.