We recently secured a bridging loan for a first-time landlord purchasing an existing 4-bed HMO, with the goal of extending and refurbishing it into a luxury 6-bed HMO.
For many new investors, the biggest concern isn’t just raising funds for the purchase and works — it’s making sure there’s a clear and achievable exit. Without this, a project can quickly become higher risk for both the borrower and the lender.
That’s why, before we even finalised the bridging facility, we obtained a mortgage in principle for the exit. This gave:
✔️ Confidence for our client that long-term finance would be available once works were complete
✔️ Reassurance for the lender that the bridging loan would be repaid on time through a viable exit strategy
✔️ A smoother process overall, reducing uncertainty at every stage
With the funding secured and the exit strategy agreed in advance, our client is now free to focus on adding value and creating a high-quality HMO asset.
This case highlights the importance of planning ahead. Whether you’re a first-time landlord or an experienced investor, having both the entry finance and exit strategy aligned from the outset is key to a successful project.
