Mortgage guide
Exit strategies, and why bridging loans get refused
Evidence for a repayment plan and the reasons a lender may decline an application.
- Published
- 13 Apr 2026
- Last reviewed
- 8 Oct 2026
- Reading time
- 3 min
Exit strategies, and why bridging loans get refused
Exit strategies, and why bridging loans get refused
Every bridging loan requires a defined exit, and the exit is the single most assessed element of the application. Common exits are refinancing onto a longer-term mortgage, selling the property, selling another asset, or injecting capital. Lenders assess exits for credibility, timing, and evidence. Comparable sales, an agreement in principle, letting demand, rather than treating them as assumptions.
Refusals follow specific, identifiable patterns, and almost all of them trace back to the exit or the asset rather than to income or employment:
- No credible exit. Over-reliance on hope value, refinance assumptions that fail mortgage criteria, or sale prices unsupported by evidence.
- LTV too high for the property type, particularly on land, commercial assets, property without planning, or non-standard construction, often fixable by reducing the loan or adding security.
- Unacceptable property. Severe structural issues, un-mortgageable construction, or defective titles that cannot be insured. One lender's decline is frequently another specialist's case.
- Unresolvable legal issues. Ownership that cannot be proven, missing access rights with no solution, or defects outside the scope of title insurance.
- An exit that relies on unevidenceable income. Where the refinance exit fails affordability, which is why the exit mortgage should be sanity-checked before the bridge completes.
- Credibility concerns. Misrepresentation, undisclosed liabilities, or poor conduct on previous bridging loans.
- Regulatory or use issues. A regulated loan structured incorrectly, or property use breaching planning or licensing.
Where an exit runs late, the existing lender may extend the loan, or a new bridging loan can refinance it, which is known as re-bridging.
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Bridging Loan Criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Borrowers | Personal, limited company (Ltd co), LLP and offshore trusts, depending on the lender |
| Repayment type | Interest only or repayment |
| Term | Short term. The maximum term varies by lender; in our experience the minimum term is usually 1 month, and 3 months with some lenders |
| Experience | Not always required; it depends on the lender and the exit |
| Max applicants | Varies by lender |
| Valuation types | Automated valuation (AVM), Market Value 1 (MV1) yield based, market value (MV), 180-day or 90-day value, depending on the lender and how it labels the valuation basis |
| Regulated and unregulated | Yes, both: regulated where the borrower or a close family member lives, or will live, in the property |
| Credit searched | Usually, depending on the lender |
| Credit scored | Varies by lender; the decision rests mainly on the property and the exit |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Loan to value | Rate |
|---|---|
| 65% LTV | 0.62% per month (2% lender fee) |
| 75% LTV | 0.72% per month (2% lender fee) |
| 85% LTV | 0.9% per month (2% lender fee) |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Additional Security | 100%+ |
| Residential | 90% |
| Commercial | 75% |
| Land | 70% |
Related case studies
Frequently asked questions
What exit strategies do bridging lenders accept?
Lenders accept exits such as the sale of the property, a refinance onto a mortgage, the sale of another asset, or other funds expected within the term, provided they are realistic and evidenced at application.
Can you be refused a bridging loan?
Yes, a bridging loan can be refused. Declines usually come from a weak or unrealistic exit strategy, a loan-to-value that is too high, poor asset quality or marketability, or a refinance exit that will not work. Income and credit are rarely the deciding factors, because lenders prioritise the property security, the leverage and the certainty of repayment.
What is the exit strategy of a bridging loan?
The exit strategy of a bridging loan is the planned way the loan will be repaid in full at the end of its term. The two usual exits are a remortgage onto a longer-term mortgage on the same property and a sale of the property, and money from another identifiable source, such as the sale of another asset, can also repay it. The lender checks the evidence for the exit and whether it will cover the full redemption figure in time. For a regulated bridging loan on a home, the FCA requires the lender to have evidence of a clearly understood and credible repayment strategy (FCA Handbook, MCOB 11.6.41R).
What is a bridging loan?
Short-term secured lending, usually between three and twenty-four months, used where timing matters more than cost: buying at auction, breaking a chain, or funding works before a property can be refinanced conventionally. Interest is materially higher than a term mortgage, and lending is granted against a credible exit: the sale or refinance that will repay it. No exit, no loan.
What are the criteria for a bridging loan?
Bridging lenders look mainly at the security — its value and type — and the exit — how the loan will be repaid — along with the borrower's identity, credit history, experience for investors, and the purpose of the loan.
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