What is a re-bridging loan?

A re-bridging loan is a short-term loan that replaces or extends an existing bridging loan. It can be a lifeline when your current bridging loan is about to end, but you need extra time to repay it in full. This gives you breathing space without rushing into a sale or refinancing.

Re-bridging finance can provide vital breathing space, avoiding rushed property sales or costly defaults if. It can be a huge help if, for example, your buyer pulls out, or refinance falls through at the last minute.

Re-bridging loans are available for individuals, landlords, developers and businesses. They're flexible and fast, helping keep plans on track when delays crop up.

How do re-bridging loans work?

Re-bridging loans are designed for when your existing bridging loan term is nearly up and you still need more time. Maybe your property hasn’t sold yet, or your refinance hasn’t gone through. A re-bridge can help you avoid defaulting on your loan and give you some breathing space. You might even find you can secure better terms by re-bridging.

Re-bridging loans are typically secured against the same property as your original loan, though a new valuation may be required. Because they’re short-term, interest rates are usually higher than a standard mortgage. However, you’ll only pay that higher rate for a much shorter time, potentially a few months.

As with any bridging finance, lenders still expect a clear repayment strategy, such as the same of a property or refinancing. Re-bridging isn’t unusual, but it’s important to act early. Not all lenders offer it, and you’ll want to give yourself enough time to find the best option for your circumstances.

Why re-bridging loans can be a lifeline:

  • Avoid costly penalties: Prevent default fees by arranging a replacement bridging loan.

  • Alternative solution: Useful if an extension with your current lender is off the cards.

  • Buys you time: Can mean you don’t have to rush into a sale at a lower price just to repay your existing loan.

  • Bridge broken chains: Useful when a buyer drops out and delays completion.

  • Rescue stalled plans: Keep projects moving if finance or sales fall through.

  • Stay flexible: Useful if your circumstances have changed since the original loan.

  • Quick payouts: Re-bridging can sometimes be completed in just a few days.

Are you eligible for a re-bridging loan?

Eligibility varies by lender, but they typically consider:

Loan-to-value (LTV)

The more equity you hold in the secured asset, the better your chances of approval and rates. A maximum of around 75% LTV tends to be typical for rebridging loans.

Credit history

Strong credit scores help, but some lenders accept more flexible credit profiles.

Security

You’ll need to secure the loan against a property or business asset with sufficient value.

Exit plan

Lenders want a clear and realistic plan for repaying the loan, such as selling a property or refinancing with a mortgage.

Loan history

Since re-bridging replaces an existing bridging loan, lenders will review how you managed your initial loan and why you need an extension.

As with any mortgage or secured loan, your home may be repossessed if you do not keep up with repayments.

How much can I borrow with a re-bridging loan?

Re-bridging loans generally follow the same lending principles as standard bridging loans. You can usually borrow from a few thousand pounds up to tens of millions, depending on the value of the property used as security.

Lenders tend to offer rebridging loans up to around 75% loan-to-value (LTV) – so if your property is worth £500,000, you could borrow up to £375,000. If your original loan was below the maximum LTV, you may be able to borrow a bit more when you come to rebridge.

Other factors affecting how much you can borrow (and the rate you’re charged) include:

  • The current LTV and property condition.

  • Your reason for needing to re-bridge.

  • Timeframe and your planned exit strategy.

  • Any supporting forecasts or business plans (for development finance).

  • Whether you take out a first charge or second charge loan - first charge options usually offer higher LTVs and lower rates.

What are the pros and cons of a re-bridging loan?

Re-bridging loans can be a real lifeline when your initial bridging loan is coming to an end but your plans aren’t quite ready. Whether you're still selling, building, refinancing, or just need more time, they help keep everything moving without falling into default.

Here are some key benefits:

  • Extra breathing room: If your property hasn’t sold or your buyer pulled out, a re-bridge buys you time.

  • Avoid costly arrears: Prevent late fees, defaults and the risk of repossession if your original loan runs out.

  • Stay on track with projects: If renovations overrun due to delays or unexpected issues, a re-bridge could help you finish the job.

  • Access more funds: Some lenders let you top up your borrowing if your property’s value and LTV allow for it.

  • Interest payment options: Interest can be paid monthly or added to the loan and paid at the end, easing pressure on your monthly finances.

  • Wait out mortgage delays: Re-bridging can tide you over while you're waiting for a buy-to-let mortgage or long-term finance to come through.

  • Handle broken chains: You may be able to access re-bridging if you are a buyer stuck in a broken chain.

  • Alternative to extensions: If your current lender won’t extend your bridging loan, re-bridging with a new provider could be your best route forward.

However, while re-bridging loans can be a useful lifeline, they do come with downsides to consider:

  • Higher interest rates: Lenders may see rebridging as riskier lending, and so interest rates may be steeper than standard bridging loans, so comparing is essential to find a favourable deal.

  • Extra fees: You may have to pay valuation, legal, exit and lender arrangement fees, even if you already paid them on your first bridging loan.

  • Short repayment window: Like any bridging loan, re-bridges are short-term. Anywhere from one to 24 months is typically available, so having a solid plan in place for repayment is essential to avoid further debt.

  • Requirement for a clear exit strategy: Lenders typically require a well-defined plan for repaying the loan, such as the sale of a property or securing long-term financing. Without a solid exit strategy, you may find obtaining re-bridging finance quite challenging.

  • Risk of repossession: As these loans are secured against property, failure to repay can lead to the lender repossessing the asset to recover the debt.

Loan guides

Answering your questions about re-bridging loans

Page updated on 25th September 2025, Reviewed by Richard Groom