Bridging Loans: Why the Exit Decides Everything

A bridge is defined by its exit, not its rate. Two borrowers can want the same money against the same building and get completely different answers, because the lender is underwriting the thing that repays the loan.Hosted by Georgina. Written analysis by Matt Lenzie.In this episodeThe three exits, sale, refinance and incoming capital, and how each is evidencedOpen versus closed, and why most borrowers are open without realisingRetained, rolled up and serviced interest, and what each does to the cash you receiveWhat a two hundred thousand pound bridge actually costs once fees are countedAuction purchases and the twenty eight day completion clockWhere the regulated line falls and who can help you either side of itGuides in this seriesThe head term: what a bridge is and when it is rightWho lends, and how appetites differWhat drives the monthly rateModelling cost including rolled interestWhole of market versus one lenderThe 28 day completion problemBidding with finance already arrangedCommercial security and the lower LTVWhere the regulated perimeter fallsBorrowing behind an existing chargeThe exit is the underwritingWhere to go nextBridging loans on the Construction Capital site carries the current terms, worked examples and the full guide set. The wider service range is at Construction Capital.Construction Capital is a trading name of Lenzie Consulting Ltd, registered in England and Wales, company number 08174104. We are a commercial finance broker and introducer, not a lender, and we are not authorised by the FCA. Where a deal is a regulated activity we arrange it through lenders who hold the relevant FCA permissions. Every figure is indicative, varies by lender and deal, and is never an offer of finance.The bridging hubA full guide hub for this series sits at Bridging Loans for UK Property Developers, with the speed, cost and exit questions answered in one place.