If you fail to repay a bridge-to-let mortgage within the agreed term, the consequences can be serious. This is a type of secured loan, which means the property serves as collateral. If the loan isn't repaid, the lender has the right to take possession of the property in order to recover their money through a process known as repossession.
Once the lender has repossessed the property, they will typically sell it to recoup their funds. If the sale doesn't cover the full loan amount, you may still be liable for the remaining balance. It's also important to note that the repossession process can have significant negative impacts on your credit score.
That's why it's crucial to have a clear and realistic exit strategy in place before taking out a bridge-to-let mortgage and to seek advice from a financial advisor or mortgage broker if you're struggling to meet your repayments.