Can You Extend A Bridging Loan?

If you’re reading this with your bridging loan deadline looming and your property still hasn’t sold, take a deep breath.

You’re not facing financial disaster, and you’re definitely not the first person to need more time.

Maybe your buyer pulled out at the last minute. Perhaps planning permission is taking months longer than expected, or your renovation project hit unexpected complications.

Whatever the reason, that maturity date on your loan agreement probably feels like a ticking time bomb right now.

Here’s what you need to know: bridging loan extensions happen all the time.

Lenders understand that property transactions rarely go exactly to plan, especially in today’s unpredictable market. The key is knowing how to approach your lender, what they’ll want to see, and what it’s going to cost you.

You’ve got options, and with the right strategy, you can secure the extra time you need without panic-selling your property or facing repossession.

We’ll walk you through how term extensions work, when they make sense, and how to get the best possible terms. By the end of this, you’ll know exactly what steps to take next.

What Exactly Is A Bridging Loan Extension?

Let’s start with the basics because there’s quite a bit of confusion around what an extension actually means.

Extension vs New Loan

A bridging loan extension isn’t the same as taking out a completely new loan.

Think of it like asking your landlord for another month on your lease – you’re continuing your existing arrangement with some tweaks to the terms, rather than starting fresh somewhere else.

Your existing security arrangements stay in place.

The charge on your property doesn’t change, and you won’t need to go through the full application process again. You’re essentially asking your current lender to give you more time under a modified version of your existing agreement.

Legal and Practical Implications

From a legal standpoint, you maintain continuity with your current loan.

This matters because it means you avoid the costs and complications of setting up entirely new security documentation.

However, don’t assume everything stays exactly the same. Your lender will likely want to reassess your situation, and they might adjust your interest rate or add fees.

The good news is that the process is much quicker than applying for a new loan, and you’re dealing with a lender who already knows your circumstances.

Related: Can You Convert a Bridging Loan to a Mortgage?

When You Might Need An Extension

The reasons people need extensions are remarkably consistent, and if you’re in one of these situations, you’re in good company.

Property Sale Delays

This is the big one.

You planned to sell your property to repay the loan, but the sale is taking longer than expected. Maybe your estate agent was overly optimistic about timing, or perhaps the market in your area has slowed down.

Buyer issues are incredibly common right now.

People are pulling out of purchases at the last minute, often because their own mortgage applications are taking longer or their circumstances have changed. Chain collapses happen regularly, especially when interest rates are changing and affordability is tighter.

Development and Renovation Overruns

If you’re using your bridging loan for a development or major renovation, delays are almost inevitable.

Planning departments are understaffed and overworked, which means what should have been a six-week approval process can easily stretch to four months.

Construction delays are equally frustrating. Weather can set you back weeks, contractors might discover unexpected problems once they start work, or materials might arrive late. Even small issues can have knock-on effects that push your completion date back significantly.

The reality is that very few development projects finish exactly when you originally planned.

Experienced developers build buffer time into their projections, but even then, you might find yourself needing a few extra months.

Related: How Do You Pay Back a Bridging Loan?

How The Extension Process Actually Works

Once you’ve accepted that you need an extension, here’s what actually happens behind the scenes.

Timing Your Request

The golden rule is simple: call your lender as soon as you know there’s going to be a problem. Don’t wait until the week before your loan matures and then spring it on them as a surprise.

Most lenders appreciate honesty and advance warning.

If you call them two months before your deadline and explain that your sale has been delayed by six weeks, they can work with that. If you call them three days before the deadline in a panic, you’re putting both yourself and your lender in a difficult position.

What Lenders Want to See

Your lender isn’t trying to catch you out, but they do need to protect their position. They’ll want to understand exactly why you need more time and, more importantly, what’s changed to make you confident you can repay during the extension period.

If your sale fell through, they’ll want to know about your new marketing strategy, pricing adjustments, or a new buyer in the pipeline. For development delays, they’ll want updated timescales from your contractors and evidence that any planning issues are being resolved.

The key is showing them that you have a realistic plan, not just wishful thinking. They’ve heard “it’ll definitely sell next month” too many times before.

Negotiation and Approval Timeline

Most extension discussions involve some back-and-forth.

Your lender might offer you three months when you asked for six, or they might want to increase your interest rate as part of the deal.

Don’t expect an immediate yes or no.

Lenders need time to review your request properly, especially if they need to get approval from their credit committee. However, once they agree in principle, the paperwork can be sorted out quite quickly.

Extension Costs and Alternative Options

Let’s talk money, because extensions aren’t free and you need to understand what you’re signing up for.

Fees and Costs

Extension fees vary between lenders, but you’re looking at somewhere between 0.5% and 2% of your loan amount. On a £250,000 loan, that could mean fees of £1,250 to £5,000, which isn’t insignificant.

Your interest rate might also increase during the extension period. Some lenders keep the same rate, others add a margin of 0.25% to 0.5% per month. You might also face additional legal costs if your solicitor needs to prepare new documentation.

Don’t forget that every extra month means another month’s interest payments. If you’re paying 1% per month on that £250,000 loan, each additional month costs you £2,500 in interest alone.

When Refinancing Makes More Sense

Sometimes switching to a different lender works out cheaper than extending with your current one, rather like remortgaging.

This is especially true if market rates have dropped since you first took out your loan, or if other lenders are offering more competitive terms.

Refinancing takes longer – you’re looking at 3-4 weeks rather than 1-2 weeks for an extension. However, if your current lender is being inflexible on fees or rates, or if they’re only offering you a very short extension, it might be worth exploring your alternatives.

Depending on your situation and the LTV, switching may give you the opportunity to borrow a bit more, perhaps to help finish a project.

The maths can be quite complex when you factor in new arrangement fees, legal costs, and valuation fees, but sometimes the numbers work in your favour.

Read more: How To Rebridge a Bridging Loan: Should You & What It Costs

Can My Extension Request Be Denied?

Yes, your extension request can be turned down, but don’t let that worry you too much right now.

Most reasonable requests with proper justification get approved, especially if you’ve been a good borrower so far.

Common Reasons Extensions Get Refused

Lenders aren’t being difficult for the sake of it when they say no. They usually have specific concerns about your ability to repay during the extended period.

The most common reason is a weak exit strategy.

If you can’t show them a realistic plan for how you’ll repay the loan during the extension period, they’ll worry they’re just delaying an inevitable problem. Saying “the market will pick up” or “someone will definitely buy it” without evidence isn’t enough.

Your payment history matters too. If you’ve been late with interest payments or haven’t communicated well during your loan term, lenders become less willing to be flexible. They want to see that you take your obligations seriously.

Some lenders also have internal policies that limit extensions. They might only offer one extension per loan, or they might have stopped offering extensions altogether due to their own funding constraints.

What to Do If You’re Refused

Getting turned down doesn’t mean you’re stuck. You’ve still got options, and many people find better solutions after an initial refusal.

First, ask for specific feedback about why they said no. Sometimes it’s something you can address quickly, like providing additional documentation or adjusting your timeline.

Don’t just accept “policy reasons” – push for details about what would make them reconsider.

If your current lender won’t budge, start looking at refinancing immediately. Other lenders might view your situation differently, especially if market conditions have changed since you first borrowed. A specialist broker can quickly identify which lenders are being flexible right now.

The key is acting fast once you get a refusal. You don’t want to waste weeks trying to change your current lender’s mind when you could be arranging alternative finance instead.

How A Specialist Broker Can Help

If you’re feeling out of your depth with extension negotiations, a specialist broker can be worth their weight in gold.

They speak fluent “lender” and know exactly how to present your case to get the best possible outcome.

Brokers have relationships with dozens of lenders, so if your current lender won’t play ball, they can quickly identify alternatives. They also know which lenders are being flexible right now and which ones have tightened up their extension policies.

Perhaps most importantly, they can run the numbers to help you decide whether extending or refinancing makes more financial sense. They’ll factor in all the costs and help you see the bigger picture, rather than just focusing on the immediate problem.

A good broker can negotiate better terms than you’d get dealing directly with the lender. They bring volume to the relationship and know how to structure requests in a way that lenders find acceptable.

Your Next Steps

If you need an extension, don’t sit there worrying about it.

The worst thing you can do is nothing, hoping the problem will somehow solve itself.

Start by getting your facts straight. Work out exactly how much extra time you need and why your original timeline didn’t work out.

Be realistic rather than optimistic – it’s better to ask for slightly more time than you think you need rather than having to go back for a second extension.

Call your lender as soon as possible.

Explain your situation honestly and ask what options are available. Even if they can’t give you an immediate answer, they’ll appreciate the early warning and can start thinking about solutions.

Speak to your broker.

They can often find alternatives you hadn’t considered and might save you money in the process. These conversations happen every day, and there’s usually a solution if you act quickly enough.