How Much Can I Borrow on a Bridging Loan?

Seeking the maximum possible bridging loan?

With access to over 250 lenders and enhanced LTV options, we'll help you secure the funding you need.

How Much Can I Borrow on a Bridging Loan?

Seeking the maximum possible bridging loan?

With access to over 250 lenders and enhanced LTV options, we'll help you secure the funding you need.

Looking to buy a property quickly or need short-term finance for a time-sensitive opportunity?

You might be wondering about bridging loans and, more specifically, how much you could borrow.

The good news is that bridging loans offer a great deal of flexibility.

With loans starting from £150,000 and no set upper limit, the amount you can borrow depends on the property’s value and the type of security you can offer. Most lenders will offer up to 75% of the property’s value, but at Bridging Finance London, we can arrange up to 80% – and in some cases, even 100% with additional security.

Let’s look at exactly what influences how much you can borrow, the options available, and how to access the best possible terms for your situation.

Understanding Borrowing Potential

When it comes to bridging loans, your borrowing power often extends further than you might expect. While most high-street lenders set strict limits, bridging finance takes a more flexible approach, looking at each case individually.

At the entry level, our bridging loans start from £150,000, but there’s no fixed upper ceiling.

We’ve arranged loans ranging from a few hundred thousand pounds for residential properties right up to multi-million-pound facilities for large developments.

Most lenders in the UK market will offer up to 75% of your property’s value.

However, we’ve built relationships with specialist lenders who’ll consider up to 80% LTV – giving you access to more funds when you need them. For example, if you’re buying a £500,000 property, this difference means you could borrow an extra £25,000 compared to standard market offerings.

What makes bridging finance particularly flexible is the ability to structure loans around your circumstances.

If you need more than 80%, we can arrange 100% funding by using additional security – perhaps another property you own or other valuable assets. This solution is called a cross-charge bridging loan. This proves especially useful when you’ve found an unmissable opportunity but want to keep your existing property finance intact.

For property investors who prefer not to provide extensive documentation, non-status loans offer a streamlined option. These loans focus on the property and don’t require credit checks, though they come with a slightly lower loan-to-value ratio of 70% and higher rates.

The speed of bridging finance sets it apart from conventional lending. Once you’ve provided the necessary paperwork, funds can be released in as little as seven days. Even complex cases rarely take more than three weeks – perfect for auction purchases or time-sensitive deals.

The property type will influence your borrowing capacity.

Residential properties often secure the highest loan-to-value ratios, while commercial buildings, land, and development projects might command slightly lower terms based on their potential and location.

How Our LTV Options Work

Understanding loan-to-value (LTV) ratios helps you work out your borrowing options. Simply put, LTV shows what percentage of your property’s value you can borrow.

Let’s break down each option and see how they might work for you.

Standard Bridging Finance (75% LTV)

Most property buyers start here.

At 75% LTV, you’ll need a 25% cash deposit, making this option well-suited for many property purchases. Say you’re buying a £400,000 property – you could borrow up to £300,000, with a £100,000 deposit needed.

This level works well for residential properties, buy-to-let investments, and straightforward commercial purchases. It’s particularly popular for auction purchases where you’ve spotted a good opportunity and need to move quickly.

Enhanced Lending (80% LTV)

We’ve developed trusted relationships with specialist lenders who’ll consider higher LTV ratios for our clients.

At 80%, you’ll need a smaller deposit – just 20% of the property’s value. On that same £400,000 property, you could borrow £320,000, meaning you’d only need £80,000 as a deposit.

This enhanced option suits experienced property investors and developers with a solid track record. It’s especially valuable when you want to keep more capital available for refurbishments or other investments.

100% LTV with Additional Security

Sometimes you might need to borrow the full purchase price.

While this isn’t possible against a single property, we can arrange 100% funding by using additional security. This might be another property you own, valuable assets, or a combination of both.

For example, if you’re buying a £500,000 property, you could use a second property worth £250,000 as additional security. High-net-worth individuals often use this option when they want to keep their investment portfolios intact or when timing matters more than selling existing assets.

Non-Status Options (70% LTV)

Non-status bridging loans look more at the property’s value than your personal financial situation.

With a maximum of 70% LTV, these loans require a 30% deposit but need less paperwork and no financial checks.

This route works well if you’re self-employed, have complex income streams, or prefer not to provide detailed financial documentation.

Property investors often choose this option when absolute speed matters more than getting the highest possible LTV. Because there’s very little checks to be done, the initial processing is very quick.

Each of these options has its place, and the right choice depends on your circumstances, the property, and your plans. Getting advice early helps ensure you choose the most suitable option – and that’s where we come in.

Let’s talk bridging loans!

Book your free consultation today and let’s discuss how we can help you achieve your property goals.

Property Types and Values

Your borrowing capacity changes depending on the type of property you’re interested in and where it’s located.

Let’s look at how different properties and locations affect what you can borrow.

Residential properties in prime London areas often secure the highest loan amounts.

A well-maintained house in zones 1-3 might qualify for our enhanced 80% LTV option, while similar properties in other regions might attract the standard 75% LTV. This difference reflects the steady demand and historically strong values in the capital.

Commercial properties present their own opportunities. Office spaces in business districts, retail units in high-traffic areas, and industrial units in established locations can all serve as good security for bridging loans. However, the loan amounts often reflect the property’s current and potential income – a fully let office building will secure better terms than an empty retail unit.

Property development opportunities can unlock substantial funding.

If you’re planning to convert a commercial building into residential flats, for instance, we’ll look at both the current value and the projected end value after development. This means you could potentially borrow more, especially if you have planning permission already in place.

You may have heard that the property condition doesn’t matter that much. That is only partly correct.

It is true that bridging lenders can accept almost any type of property, in any type of condition. But run-down properties will receive a lower valuation, and possibly a slightly restricted LTV.

Mixed-use properties – like shops with flats above – need careful consideration. We’ll assess both the commercial and residential elements to determine the most advantageous loan structure. These properties often appeal to lenders because they offer diverse income potential.

Every property has its own story, and we’re here to help you understand how yours affects your borrowing options. By looking at all these factors together, we can find the most suitable lending solution for your specific situation.

Read more: What is a Bridging Loan Secured Against?

Understanding Security Requirements

Securing your bridging loan isn’t a one-size-fits-all process.

You’ve got several options, and understanding them can help you structure your borrowing in the most advantageous way.

Single property security works well for straightforward purchases, or second charge loans.

If you’re buying a £500,000 house in London, you might borrow £400,000 against that property alone at our 80% LTV. This keeps things simple – one property, one loan, one set of legal work.

It’s quick to arrange and often proves cost-effective.

But what if you need more flexibility?

That’s where multiple property security comes in. You might use two or three properties to support one larger loan, or to achieve better terms. For example, if you own a few buy-to-let properties, you could use these alongside your new purchase to strengthen your application.

Or, if you own multiple properties you can raise funds by using more than one bridging loan.

Beyond property, other assets can boost your borrowing power.

High-value items like investment portfolios, expensive cars, or art collections can all play a part. We’ve helped clients use these assets to bridge funding gaps or secure 100% funding. A client recently used their investment portfolio alongside their property to unlock the full purchase price for a time-sensitive commercial opportunity.

You can even leverage your cryptocurrency holdings!

Each security option comes with its own pros and cons. Single property deals move faster, while multiple property arrangements need more paperwork but offer greater flexibility. Using additional assets might take longer to arrange but could give you access to more funds, and lower rates.

We’ll help you weigh up these options based on your timeline, the properties involved, and your overall financial goals. This way, you’ll choose the security structure that best matches your needs while keeping the process as smooth as possible.

Exit Strategy

Your exit strategy – how you plan to repay your bridging loan – directly affects your application.

A well-planned exit gives lenders confidence and often leads to better loan terms.

Most borrowers choose one of two main routes.

The first is selling the property. You might buy a house that needs work, refurbish it, and sell it on at a profit. Or perhaps you’re waiting for your current home to sell and need to bridge the gap.

In these cases, you’ll need to show the property’s sales potential and your track record with similar projects.

The second common route involves refinancing onto a long-term mortgage. This works well when you’re buying a property that needs improvements before a standard mortgage lender will consider it.

One of our clients recently bought a fire-damaged house that no mortgage lender would touch. They used a bridging loan to buy and repair it, then switched to a standard mortgage once the work was done.

Your chosen exit route affects your borrowing power.

A property in a sought-after London postcode with strong sales evidence might secure you a higher loan amount than one in a slower market. Similarly, if you’re planning to refinance, lenders will look at how realistic this is based on the property type and your own financial circumstances.

Related reading: Can You Convert a Bridging Loan to a Mortgage?

Interest and Cost Structure

Understanding how interest works on bridging loans can sometimes be challenging, mainly because there are three different methods.

It will be up to the lender to determine which of these they can offer.

Monthly interest payments work just like a standard interest-only mortgage – you pay the interest each month, and the loan amount stays static. This option often allows you to borrow more as the interest doesn’t need to be deducted from your loan amount. It suits investors with good cash flow or rental income from other properties.

Rolled-up interest adds to your loan balance each month, increasing the debt. You don’t make any payments until the end of the term, which helps with cash flow during your project. However, you’ll need to factor this into your exit strategy as the final repayment will be larger.

Some borrowers like retained interest, where the total interest for the term gets deducted from your loan at the start. While this reduces your initial borrowing power, it gives you certainty about the total cost and suits shorter-term projects.

Beyond interest, you’ll need to consider other costs. These include valuation fees, legal work, and arrangement fees. We’ll help you understand these costs upfront so you can factor them into your plans and choose the most cost-effective structure for your situation.

Why Work With Us

Our connections across the UK and International lending markets open doors that might otherwise stay closed. With access to over 250 lenders, including private banks and specialist funders, we find solutions that others might miss.

We go beyond the standard 75% LTV that most lenders offer.

Our relationships with specialist lenders mean we can secure 80% LTV – and in some cases, 100% with additional security. This could make the difference between moving forward with your plans or missing out on an opportunity.

Complex cases need experienced hands.

Whether you’re buying an unusual property, working to a tight deadline, or have a complicated financial structure, we’ve handled similar situations before. A client recently came to us after being turned down by several brokers – we secured their funding within two weeks by matching their needs with the right lender.

Our market knowledge saves you time and money. We know which lenders suit different scenarios, their current appetites, and how to present your case in the best light.

This means faster decisions and better terms.

Ready to Explore Your Options?

When it comes to short-term bridging finance, the amount you can borrow depends on various factors – from the property type and location to your exit strategy and security options.

With loans starting from £150,000 and no upper limit, plus flexible LTV options up to 80% (or even 100% with additional security), we’ll help you find the right solution.

Taking the next step is simple.

Give us a call on 020 3488 5706. We’ll discuss your plans, explain your options, and help you understand exactly how much you could borrow. With our expertise in the UK bridging market and access to hundreds of lenders, we’ll find the best terms for your situation.

FAQ

Our minimum loan amount is £150,000. This applies to all types of bridging finance, whether for residential, commercial, or development projects.

Yes – usually 20-25% of the property value, though this varies. With our enhanced lending, you’ll need 20% deposit for 80% LTV loans. Some cases can achieve 100% lending with additional security, meaning you won’t need to provide a cash deposit.

Read more: Do You Need a Deposit for a Bridging Loan?

Most UK property types qualify, including residential, commercial, mixed-use properties, and land. Even unmortgageable, unusual properties or those needing renovation can be considered.

Read more: What is a Bridging Loan Secured Against?

Additional properties, investment portfolios, valuable assets like art collections or luxury cars can all be considered as extra security.

Borrowing against a share portfolio, gold bullion and even crypto coins is all possible. But not always with the same lender. After understanding your situation we will prepare a borrowing strategy that makes the most sense.

Read more: A Guide to Cross Charge Bridging Loans

Commercial properties typically secure up to 75% LTV, though each case is assessed individually based on location, condition, and potential.

Yes – while experience helps, we can arrange loans for first-time investors. The focus will be on your exit strategy and the property’s potential.

Read more: Can a First Time Buyer Get a Bridging Loan?

Still have more questions?

Just give us a call on 020 3488 5706 to speak with an expert.
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