A bridging loan redemption statement is one of the most important documents you will encounter when repaying short-term property finance. Whether you are selling a property, refinancing, or simply settling your loan early, understanding exactly what this document is — and why it carries legal weight — can save you from costly mistakes.
What is a bridging loan redemption statement?
A bridging loan redemption statement is a formal financial and legal document issued by your lender. It sets out the precise total amount required to fully repay your bridging loan on a specified date. This figure is not a rough estimate — it is a calculated sum that accounts for every penny owed, including interest accrued up to that date and any outstanding fees.
Unlike a standard loan balance, the redemption figure on a bridging loan changes daily. Because bridging finance is calculated on a monthly or daily interest basis, the amount you owe on a Monday is different from what you owe by Wednesday. This is why the statement comes with a validity window — typically 28 days — and often includes a daily interest figure so your solicitor can adjust the calculation right up to the moment of repayment.
This document sits firmly within the domain of property law. Your solicitor will use it to discharge the legal charge your lender holds against your property. Without a valid redemption statement, completion cannot proceed.
What does a bridging loan redemption statement include?
Every redemption statement will clearly set out the following:
- Outstanding principal — the original loan balance still owed
- Accrued interest — all interest charged from the last payment date through to the proposed redemption date
- Arrangement, administration, or exit fees — any applicable charges under the terms of your loan agreement
- Daily interest figure — allows your solicitor to recalculate if the repayment date shifts
- Total redemption figure — the exact sum that must be received by the lender to fully discharge the loan
It is worth noting that if your loan was set up on a retained interest basis — where interest was deducted from the advance at the outset — any unused months of interest will be credited back in the settlement calculation. This is a detail that borrowers often overlook and one that can meaningfully reduce the final figure.
When do you need a bridging loan redemption statement?
There are several common situations where requesting a redemption figure becomes essential.
Property sale
When you are selling a property that has a bridging loan secured against it, your solicitor needs the redemption statement before exchange or completion. The lender’s legal charge must be removed on or before completion day, and that can only happen once the exact settlement figure has been paid.
Refinancing onto a mortgage
Many borrowers take out a bridging loan to purchase or renovate a property quickly, intending to refinance onto a standard mortgage once the work is complete or a tenancy is in place. At the point of refinancing, your new mortgage lender’s solicitor will request the redemption statement to ensure the bridging charge is cleared simultaneously with the new finance being drawn down.
Early repayment
If circumstances change and you are in a position to repay your bridging loan ahead of the agreed term, you will need a current redemption figure. This gives you the confirmed total to clear, including any early repayment charges that may apply under your loan terms. If you are unsure whether your loan carries exit fees, our detailed guide to bridging loan interest rates covers the key cost structures to be aware of.
Auction property settlement
Auction purchases have tight legal deadlines — often 28 days to complete. If your bridging loan was arranged to fund an auction purchase and you are now refinancing or selling, the redemption statement becomes a time-sensitive document that your solicitor needs immediately. For more on how bridging finance works in auction scenarios, see our article on bridging loans for auction properties.
Is your bridging loan repayment date coming up?
Your redemption figure can change daily until the loan is fully repaid. Getting legal support early can help avoid expired statements, payment errors, and delays removing the lender’s charge. Get help with your bridging loan redemption statement
How to request your redemption figure
The process is straightforward but must be handled correctly. In most cases, it is your solicitor — rather than you directly — who requests the redemption statement from the lender. They will typically write to the lender’s credit control team or contact them via a dedicated redemptions email address.
The request should be made at least three working days before the proposed redemption date. This gives the lender time to prepare an accurate figure and ensures your solicitor has what they need before funds need to be transferred.
Once issued, the statement will be valid until the date of your next monthly interest payment. If redemption does not take place before that date, the statement becomes invalid and a fresh one must be requested. This is a common source of delay in property transactions, particularly where completion dates shift at the last minute.
If the amount paid exceeds the stated redemption figure — which can happen when a statement expires and interest continues to accrue — the lender is required to refund the overpayment. This is typically returned to the bank account from which previous payments were made.
Why this document matters from a legal perspective
The redemption statement is not merely an admin formality. It is a key legal document in the conveyancing process. When a bridging loan is secured against a property, the lender registers a legal charge at HM Land Registry. That charge prevents the property from being sold or remortgaged without the lender’s consent and without the debt being cleared.
Your solicitor cannot apply to remove that charge — known as discharging the mortgage — until the lender has confirmed that the full redemption figure has been received and the debt is satisfied. A delay in obtaining the statement, or a miscalculation of the amount owed, can hold up completion and expose the borrower to further interest accumulation.
For borrowers who have taken out more complex structures — such as a bridging loan secured against multiple properties, or development finance with a retained interest facility — the redemption process can involve several linked charges being discharged simultaneously. In those cases, early engagement with your solicitor is particularly important.
If you are approaching the end of your bridging term and have not yet confirmed your exit route, our team regularly advises borrowers on the steps involved. Understanding what documents are required at each stage is a good starting point — our checklist of documents needed for a bridging loan covers the full picture from application through to repayment.
Common questions about bridging loan repayment
How long is a redemption statement valid for?
Most statements are valid until the date of the next monthly interest payment, which may be as little as a few days away. Some lenders issue statements with a 28-day validity window, but it is always safer to confirm the expiry date with your solicitor.
Can the redemption figure change after it has been issued?
Yes. Because bridging loan interest accrues daily, the total will increase each day until payment is received. That is why lenders include a daily interest rate in the statement, so your solicitor can calculate an updated total up to the actual repayment date.
What happens if I pay the wrong amount?
If you pay less than the redemption figure, the loan will not be discharged and the legal charge will remain on the property. If you overpay, the lender must refund the difference. Either way, the transaction cannot complete until the exact amount is confirmed as received.
Does my solicitor handle this on my behalf?
Yes. In the vast majority of cases, your solicitor manages the entire redemption process — from requesting the statement to transferring funds and applying to Land Registry to remove the charge. This is standard practice in UK property conveyancing.
How a bridging loan solicitor can help
Navigating bridging loan repayment without legal support is a significant risk. The stakes — a property transaction, a tight deadline, and a lender holding a charge over your asset — make professional guidance essential.
A solicitor who acts exclusively for bridging loan borrowers will know exactly when to request the redemption figure, how to interpret the breakdown, and how to coordinate the fund transfer and charge removal in a single smooth process. They will also flag any discrepancies in the statement, such as unexpected fees or an interest calculation that does not match your loan agreement.
If you are approaching repayment on a bridging loan and want to make sure the legal side is handled correctly, speaking to a specialist early gives you the best chance of a clean, on-time completion.
For a broader overview of how the redemption process works across different types of property finance, the Unbiased guide to mortgage redemption provides a useful comparison with standard mortgage repayment.
Need help repaying your bridging loan?
A bridging loan redemption statement confirms the exact amount needed to clear your loan. If the figure is requested late, expires, or is calculated incorrectly, your sale, refinance, or completion can be delayed. A specialist solicitor can check the statement, arrange repayment, and help remove the lender’s legal charge properly.