Replace an Expiring, Extended or Penalty-Rate Loan
Bridging Refinance
Your bridging or commercial loan is reaching the end of its term, or the extension fee has just landed. We arrange a replacement facility on business or investment property, redeem the old lender and keep the deal moving before default interest takes hold.
£200k–£100m+
Loan Size
12 to 24 months
Typical Term
some lenders go to 36 months
Up to 75% LTV
Typical LTV
Key Features
What We Offer
Replace an expiring facility
Your bridge or commercial loan is reaching term and the exit has not landed yet. We place a new facility before default interest starts.
Stop penalty-rate interest
Already on extension fees or default rates? A replacement facility redeems the old debt and stops the clock.
Consolidate several loans
Several lenders on one portfolio can become one facility, one contact and one set of covenants.
Business and investment property only
For business or investment purposes only - never secured on a home you or your family live in.
Repaying early
Where there is an early repayment charge, it is usually three months' interest; very occasionally six; some loans have none.
Redemption handled for you
We chase the redemption statements, line up one solicitor and keep the old and new lenders moving together.
Ideal For
Common Scenarios
Term ending, exit not ready
The sale has slipped or the term lender is late. You need months, not weeks, and you want them before penalties begin.
Extension fees about to bite
Your lender will extend, at a price. We compare that price with a clean replacement facility.
Several loans, one portfolio
Five properties and five lenders become one cross-charged facility. See the Birmingham case study below.
Lender has pulled out
The refinance lender fell through at the last minute. We go back to the market with a plan B already in hand.
Before You Start
What You Need From Your Current Lender
A refinance is only as fast as the old lender’s paperwork. Ask for these four things on day one, in writing, before anyone prices anything. If the loan is in a company’s name, our limited company bridging guide sets out what lenders need from the company.
A redemption statement
The exact figure to clear the loan on a given date, including accrued interest and any fees. It has a shelf-life, so ask for the date you expect to complete.
The exit fee
Some lenders charge up to 1% of the loan on exit and many charge nothing. Confirm which applies to you.
Any minimum interest period
If the facility has a minimum term of interest, repaying early still costs the full period. It changes whether a quick refinance saves money.
Early repayment charges
Check the facility letter for ERCs. We compare the charge against the cost of staying put, so the decision rests on numbers.
Valuations
Can the New Lender Use My Existing Valuation?
Sometimes, but do not assume it. A valuation is addressed to the lender that commissioned it. A new lender will usually want it readdressed to them, or a fresh report, and each has a cost and a timescale.
- Readdressing. The original valuer has to agree to it, and may want a fee and a few weeks.
- Reliance and age. Reports have a shelf-life. A report close to its age limit can stop being usable while the deal is still in progress.
- The lender’s panel. The new lender decides who may value. A valuer you know, but who is not on its panel, cannot be used.
The practical rule: when you order any valuation, ask the valuer up front whether they will readdress it to another lender, and on what cost and timescale. For the different types of report and what each is used for, see valuation types explained.
Redemption Day
What Comes Off on Redemption Day
Borrowers are often surprised by the gap between the gross loan and the money that reaches the old lender. Ask for a gross-to-net breakdown in writing before you accept terms. As an illustration:
Interest is usually rolled up, so none is taken on day one. Over nine months at 0.76% a month, the average published rate across 42 lenders, as at 25 October 2026, the interest is £34,200, which makes the all-in cost of this example £50,700. If the old loan costs more than the net advance, the shortfall has to come from you. We work it out before you commit, not on completion day.
Plan B
What If the Refinance Lender Falls Through?
It happens, usually late. That is why we take a deal to several lenders at once and keep a second set of indicative terms warm while the first lender is in legals. Valuation, title and consents are prepared so they can move to the second lender without starting again. Where the old loan is already at penalty rates, that second set of terms is what stops a missed date from becoming a bad month.
A Real Example
Five Loans, One Facility, 28 Days
A Birmingham investor had five commercial properties on five loans. One facility expired in six weeks and another was about to trigger punitive extension fees. We placed all five under a single cross-charged facility at 0.75% a month (the rate on this deal), ran the five valuations in parallel and had one solicitor handle every redemption. It completed in 28 days and released £420k of equity. Read the full case study.
Want to raise capital from an investment property, or move onto a term mortgage instead? See capital raising and development exit.
Typical Costs
What You’ll Pay
Every deal is different, but here’s what to budget for on a typical bridging refinance facility. Use our calculator to estimate total costs for your specific deal.
Interest
0.50–0.85% a month, rolled up
Arrangement Fee
1–2% of the gross loan.
Valuation
Nil to about £100 for a desktop valuation and up to about £2,000 for a full one, plus VAT, on a loan of about £200k, depending on the property
Legal Fees
About £1,500–£2,000 plus VAT for each side on a loan of about £200k (more on larger or complex loans; includes redemption coordination with existing lender)
Exit Fee
0–1% of the loan. Many lenders charge none.
Our Fee
Generally 1% of the gross loan, paid on completion
Common Questions
Refinance FAQs
Can I refinance if my current lender is charging default interest?
What do I need from my current lender?
Can the new lender use the valuation I already paid for?
What actually reaches my old lender on the day?
What if the refinance lender falls through?
Will I pay early repayment charges to my existing lender?
How quickly can a refinance complete?
Can I refinance a portfolio onto a single facility?
Related Products
You Might Also Need
Capital Raising
Release equity from your property portfolio without selling. Fund new acquisitions, business growth, or other capital needs.
Development Exit
Transitioning from a development facility to a holding product while units sell. Lower rates while you maximise your exit price.
Second Charge Bridging
Raise additional capital behind your existing first charge without the cost and disruption of a full refinance.
Real Results
Deals We've Structured
Ready to Discuss Your Deal?
Get an indicative quote or arrange a call with a specialist. If we can respond immediately we will, otherwise we'll call you back the same working day, often within a couple of hours.