Refinance bridging loans are loans used to refinance an existing loan, typically a bridging loan, with a new loan. These loans are also known as bridge-to-term loans, as they provide borrowers with short-term financing to bridge the gap between the end of their existing bridging loan and the start of a longer-term financing solution, such as a mortgage.

Refinance bridging loans can be helpful for borrowers who have taken out a bridging loan to fund a property purchase or renovation project and cannot repay the loan when it becomes due. Instead of selling the property or losing it to the lender, the borrower can refinance the bridging loan with a new loan with more favourable terms and a more extended repayment period.

The loan amount for a refinance bridging loan is typically based on the property’s value used as security and the borrower’s financial situation and credit history. The loan term can range from a few months to several years, depending on the borrower’s needs and circumstances. Interest rates and fees for refinance bridging loans can vary depending on the lender and the borrower’s financial situation.

One of the main benefits of a refinance bridging loan is that it provides borrowers with a longer-term financing solution that is more affordable than a traditional bridging loan. It also allows borrowers to avoid losing their property if they cannot repay the loan when it becomes due. Refinance bridging loans can be used for various purposes, including property purchases, renovations, or debt consolidation.

However, it’s essential for borrowers to carefully consider the costs and risks associated with refinance bridging loans. Interest rates and fees can be high, and borrowers may risk losing their property if they cannot repay the loan. Borrowers should work with a reputable lender or broker who can provide clear and transparent information about the loan terms and conditions.