Fundamentals
5 min read
Updated 2026-01-03
Bridging Loan Exit Strategies Explained
Your exit strategy is how you'll repay the bridging loan. It's the most important factor lenders assess - get it right and you'll access better rates and higher LTVs.
The Two Main Exit Routes
1. Sale of Property
You repay the bridge by selling the property (either the one you bought, or another asset).
- Best for: Flips, auction purchases for resale, downsizers
- What lenders want: Realistic valuation, property already marketed, or clear demand
- Typical terms: 6-12 months, rates from 0.44%
2. Refinance to Long-Term Mortgage
You repay the bridge by taking out a standard mortgage on the property.
- Best for: Unmortgageable properties made mortgageable, refurb projects, BTL investments
- What lenders want: Mortgage Agreement in Principle, evidence property will be mortgageable
- Typical terms: 6-18 months, rates from 0.49%
Which Exit Strategy Gets Better Rates?
Lenders prefer clear, documented exits. The ranking typically goes:
- Exchanged sale - Best rates (you've already sold, just waiting for completion)
- Mortgage AIP in place - Very strong (refinance is almost guaranteed)
- Property on market with interest - Good (evidence of demand)
- "Will sell or refinance" - Weakest (no evidence, higher rates)
The difference between a strong and weak exit can be 0.15-0.25% per month.
Have a clear exit strategy?
Compare rates from 26 lenders. Strong exits get the best pricing.
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