Exit strategy (bridging)

Bridging finance is short-term by design — typically 3 to 24 months — and is repaid in a single lump sum rather than amortised. Because there is no monthly principal repayment, the lender's protection rests almost entirely on the credibility of the exit. A bridging loan with a vague or speculative exit is significantly higher risk than the same loan with a documented refinance offer in hand.

The two most common exits in the UK market are refinance and sale. Refinance exits typically involve moving the borrower onto a commercial mortgage or buy-to-let mortgage once the property has been renovated, let, or otherwise repositioned to meet the long-term lender's criteria. Sale exits involve marketing the property during the bridging term and using the proceeds to settle the bridge. Either route should be documented at application with a clear timeline.

If the original exit fails — for example, the refinance lender declines or the sale falls through — most UK bridging lenders will consider an extension, but at a higher rate and with fresh costs. Default rates on bridging loans where the original exit fails can be materially higher than the headline rate, which is why credible exits are non-negotiable for serious lenders.