A competitive refinance offer does not stop the interest on your existing bridging loan. That happens when the old debt is repaid. GB Bank’s introduction of dual legal representation on eligible refinances puts the completion process in focus: reducing unnecessary coordination could matter financially when every additional month carries a substantial cost.
The announcement, published on 15 October, allows one approved law firm to act for both borrower and bank on qualifying transactions. The aim is to make the legal process more efficient and potentially less expensive.
That is useful news for some property investors. It is also a reminder to assess a refinancing route by more than its headline rate. The facility must suit the property, provide enough money to redeem the existing debt and complete within a workable timetable.
Dual representation can help with one part of that process. It does not guarantee a completion date or resolve an underlying title, valuation or affordability problem.
What GB Bank Has Introduced
The option covers eligible standard BTL and bridging refinances within GB Bank’s simplified range, where total facility or group exposure does not exceed £2m. Borrowers and ultimate beneficial owners must be UK-based; eligible foreign nationals with UK residency rights can be considered.
The announced panel comprises Ward Hadaway, Lester Aldridge, Jury O’Shea and Harold Benjamin. Cases using title indemnity insurance can also qualify, subject to the bank’s requirements.
What Does Dual Representation Actually Change?
In a separately represented refinance, the borrower’s solicitor and the lender’s solicitor each act on their respective instructions. That can require correspondence between firms as documents and responses are reviewed.
Under the new option, an approved firm can handle both roles where appropriate. The intended benefit is fewer duplicated exchanges and less coordination between separate firms.
The legal work still needs doing. The solicitor must establish what is being offered as security, address relevant requirements and arrange repayment and registration properly. One firm does not mean no checks.
It is also important to understand the appointment. The firm acts for the lender as well as the borrower. The solicitor should explain the scope of the work, information-sharing arrangements and any need for advice outside that instruction.
A Month on the Old Bridge Can Be Expensive
Consider a hypothetical investor with £1.2m outstanding on a bridging facility charging simple interest at 0.90% a month. For this illustration, assume an additional month is chargeable in full. That month adds £10,800 of interest.
Suppose a suitable replacement interest-only mortgage has an illustrative annual rate of 6%. On an unchanged £1.2m balance, its interest would be £72,000 a year, or £6,000 per month on a simple annual-divided-by-12 basis.
If the investor spends one extra month on the bridge instead of the replacement mortgage, the illustrative difference is £4,800. The whole £10,800 is not an avoidable saving, because borrowing on the replacement facility also costs money.
By comparison, a 0.10 percentage-point reduction in the replacement annual rate would save £1,200 over a full year on that balance, before fees. In this example, one month’s delay costs four times that annual rate saving.
| Measure | Illustrative Amount |
|---|---|
| One additional month on the bridge at 0.90% | £10,800 |
| One month’s interest on replacement borrowing at 6% a year | £6,000 |
| Additional interest from spending that month on the bridge | £4,800 |
| Annual saving from a 0.10 percentage-point lower replacement rate | £1,200 |
The example is a reason to compare timing and price together. It is not evidence that dual representation saves a month, or that any particular lender will complete faster.
Actual bridge interest may be retained, rolled up or serviced, with different calculation methods and minimum periods. Check the contract and obtain a redemption figure before estimating the effect of an earlier repayment.
Confirm the £2m Limit Before Building the Plan Around It
The announcement refers to total facility or group exposure, rather than an allowance for each property. A refinance below £2m should not automatically be treated as eligible if related borrowing is also relevant.
Ask the bank how it measures exposure for the proposed transaction, including connected borrowers and existing facilities where applicable. The borrower’s legal structure and beneficial ownership need to be clear at the outset.
The UK-based conditions matter too. Do not assume the option extends to overseas borrowers or beneficial owners simply because the security is in Britain. A UK-resident foreign national and an overseas ownership structure are different propositions.
These are eligibility checks for a particular process, alongside the bank’s full lending assessment. They do not establish that the loan amount, property or proposed use will be accepted.
How Much Time Is Left on Your Bridging Facility?
Willow can review the maturity date, expected redemption balance and proposed refinancing route, then assess the lender and legal requirements needed to move towards completion.
Review Your Bridging Exit Options →Refinancing a Bridge Is Not Always a Long-Term Exit
A replacement bridging facility may repay the current lender while leaving the investor with another short-term loan and a later repayment deadline. That can be appropriate in some cases, but the ultimate exit still needs to work.
A BTL mortgage, meanwhile, requires the property and rental position to meet the chosen lender’s criteria. Completed refurbishment alone does not establish that the required term borrowing is available.
Check the proposed valuation, rental evidence, property condition and intended letting arrangement. If the term loan falls short of the redemption balance and costs, identify how the gap will be funded.
A more efficient legal process cannot make an insufficient loan sufficient. Establish the financing route before relying on its completion timetable.
Find the Actual Hold-Up Before Changing Anything
A case described as “with solicitors” may be waiting for very different things. The lender may still need a document, a management company may not have replied or the borrower may not have signed an outstanding item.
Ask for a clear explanation of the remaining conditions, who is responsible for each and what must happen next. A general request to complete urgently does not resolve an unidentified dependency.
If a refinance is already advanced, changing lender or solicitor can introduce new work and costs. Compare the remaining steps under the current arrangement with the realistic requirements of a fresh instruction before deciding to switch.
The new option is worth assessing where it fits. It is not, by itself, a reason to abandon a credible transaction approaching completion.
The Solicitor Still Has to Assess Conflicts
The SRA’s guidance requires solicitors to consider conflicts and significant risks of conflict when acting for multiple clients. Any applicable exception has conditions, including informed consent and appropriate protections.
A borrower and lender can share the objective of completing while still having different interests. The firm must decide whether it can properly act and explain any limits on its instruction.
If a problem arises, the representation arrangements may need to change. Ask the solicitor how that would be handled and whether separate advice is required for any element of your transaction.
That decision belongs to the legal professionals. An eligibility indication from the bank does not override their professional obligations.
Compare the Complete Cost of Getting the Debt Repaid
Request a legal quotation setting out the scope, VAT, disbursements and exclusions. Potentially fewer firms does not establish a fixed saving for every case.
The financing comparison should also include arrangement fees, valuation costs, existing exit or early repayment charges, any extension costs and the interest expected before redemption.
Distinguish the gross new facility from cash actually available to repay the old debt. Fees or retained interest deducted from an advance can affect the amount available on completion.
If the existing facility may reach maturity first, speak to the current lender in good time. Do not assume an extension is automatic or that the replacement lender’s intention to lend changes the present contractual deadline.
How Willow Can Help With a Time-Sensitive Refinance
Willow starts with the existing facility, the property and the intended exit. Useful information includes the maturity date, latest redemption estimate, current rate, ownership structure, valuation evidence and any outstanding legal queries.
We can assess suitable lending options and coordinate the financing requirements with the borrower’s solicitor and other professionals. Where GB Bank’s dual-representation option fits, it can form part of that comparison.
The objective is a workable refinance at an understood total cost. A modest rate advantage can be valuable, but so can avoiding unnecessary time on expensive debt. The right comparison needs both.
Frequently Asked Questions
Legal representation, refinancing eligibility and completion costs.
What is dual legal representation on a refinance?
It means an approved law firm acts for both the borrower and the lender where permitted and appropriate. The legal checks remain, and the firm must assess conflicts, confidentiality and the scope of its instructions.
Which cases qualify for GB Bank’s new option?
The announcement covers eligible standard BTL and bridging refinances within its simplified range, subject to total facility or group exposure of no more than £2m and UK-based borrower and beneficial-owner requirements. Confirm the full criteria for the actual case.
Does dual representation guarantee a faster or cheaper refinance?
No. It may reduce coordination and duplication, but the outcome depends on the transaction and outstanding requirements. Obtain a legal quotation and a realistic timetable rather than assuming a particular saving.
Can a UK-resident foreign national be considered?
The announcement includes foreign nationals with UK residency rights, within its UK-based requirements. Individual eligibility still needs checking; this should not be assumed to cover overseas borrowers or beneficial owners.
Should I switch a refinance that is already with solicitors?
Assess the current hold-up and remaining work first. Changing lender or firm can add cost and delay. Compare the existing route with the full requirements of any replacement before deciding.