Bridging Loan Exit Strategies

When you take out a bridging loan, the most crucial part isn’t just how much you can borrow — it’s how you’ll repay it. That’s why every bridging lender, including us at LendFirst, will ask about your exit strategy. A strong exit plan is the difference between a smooth deal and unnecessary stress.

What Do We Mean by an Exit Strategy?

An exit strategy is your plan for paying back the loan when the term ends. With bridging finance, the term is typically short (usually 6–18 months), so you need a clear and realistic route. Common examples include:

• Selling the property once it’s refurbished or when the timing is right in the market.
• Refinancing onto a long-term mortgage, such as a buy-to-let or commercial loan.
• Switching to development finance for larger projects that move from acquisition into construction.

Why It’s So Important

Your exit isn’t just for the lender’s peace of mind; it’s also for yours. A bridging loan is designed to give you speed and flexibility, but without a clear exit, you risk higher costs or even default. At LendFirst, we always encourage clients to plan conservatively — better to have breathing space than to cut things fine. Not having a clear exit strategy can lead to unexpected costs and potential default, which is why it’s crucial to plan ahead.

Tips for Planning Your Exit

• Be realistic about timing: Sales and refinances can take longer than expected.
• Budget properly: Don’t forget valuations, legal costs, and any refurb budget.
• Work with the right professionals: Experienced solicitors and brokers save weeks, not just days.

At LendFirst, we have a network of trusted professionals who can assist you in the exit planning process, ensuring a smooth and efficient transition.
Thinking about your next project? At LendFirst, we’ll work with you to create a loan structure that makes sense from the start. Get a quote today and let’s talk exit strategies.