WHAT IS AN EXIT STRATEGY?
An exit strategy is your ability to pay off the loan. A Residential Bridging Loan can be redeemed in one of three ways:
- The sale of property
- Refinancing to a Basic or Buy-to-Let Mortgage
- Cash redemption from another source
The exit strategy is a vital part of any Bridging Loan application. It is having a strong exit strategy that makes the loan application process so fast and flexible and can be more important when applying than your credit history.
For example, if the borrower’s exit strategy is the sale of a property then someone with a poor credit score could get a Bridging Loan.
But if their strategy was to remortgage, their credit rating would likely stop that happening. So their exit strategy would be less credible, and they would be less likely to get a Bridging Loan.