Bridging finance for developer exit

We understand the financial pressures developers face at the end of a project. When the build is complete but sales are still in progress, or if you’re looking to refinance away from costly development finance, a development exit loan can provide the ideal solution. Specifically, a developer exit bridging loan is a short-term funding option that helps developers repay their existing finance and gain the flexibility needed to finalise sales or prepare for long-term refinancing. This type of development exit finance is typically more competitively priced than standard bridging loans due to the lower risk associated with a completed asset. It’s designed to give developers more time and breathing room at a critical point in the project lifecycle, without the need for expensive extensions or rushed sales. Most development exit loans are available on terms ranging from 1 to 36 months, offering developers the flexibility to align finance with their sales strategy, market conditions, or future refinancing goals. Whether you need just a few months to finish marketing units or a longer term to prepare for a refinance, Mortgage Lane can source whole-of-market options, including broker-only exclusive products not available directly to borrowers.

Interest Repayment Options: Rolled vs. Serviced

There are two common ways to structure interest repayment on a development exit bridging loan:

Rolled (Deducted) Interest:

The total interest for the full loan term is calculated at the outset and deducted from the gross loan amount. This simplifies cash flow by removing the need for monthly interest payments, though it reduces the initial amount released.

Serviced Interest:

Alternatively, borrowers can opt to pay the interest monthly during the term. This keeps the loan amount intact on day one and is useful for developers with regular income who want to maximise the cash released. The right option depends on your project’s cash flow, sales strategy, and how much liquidity you need upfront. Unlike traditional mortgages, where interest is often calculated and charged annually, development exit bridging loans follow a monthly charging model. This ensures the finance aligns with the fast-moving nature of the post-completion sales process and allows for better control over exit timelines and budgeting. The monthly model also enables borrowers to exit early without paying full-term interest, making it a more cost-effective option for developers expecting to sell units quickly.