We are asked all the time about the maximum loan to value (LTV) for bridging finance so have collated everything you need to know about bridging loans with higher loan to values (up to 100% LTV) and how to boost your chances of getting one.\r\n\r\nMost bridging finance providers impose a strict loan to value (LTV) cap, but there are circumstances where lenders may be willing to offer this product with a 100% LTV.\r\n\r\nThe following topics are covered below\u2026\r\n<ul>\r\n \t<li style="list-style-type: none;"><\/li>\r\n \t<li><a href="#what-is-100%">What is a 100% LTV bridging loan?<\/a><\/li>\r\n \t<li><a href="#how-can-I-get">How can I get a 100% bridging loan<\/a><\/li>\r\n \t<li><a href="#bridging-eligibility">Bridging loan eligibility<\/a><\/li>\r\n \t<li><a href="#bridging-90%">Bridging finance with 90% LTV<\/a><\/li>\r\n \t<li><a href="#bridging-loan-market-value">Taking a bridging loan at market value<\/a><\/li>\r\n \t<li><a href="#speak-to-bridging-expert">Speaking to a 100% LTV bridging loans expert<\/a><\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="what-is-100%">What is a 100% LTV bridging loan?<\/h2>\r\nTo put it simply, a 100% bridging loan is a loan from a bridging provider that covers the total value of the property or asset <a href="#how-can-I-get">you want to secure<\/a>.\r\n\r\nThey are uncommon, as bridging loans usually come with a max LTV of 75% of the gross loan, i.e. the loan amount with all of the fees and interest added.\r\n\r\nBorrowers usually need to stump up a 25-30% deposit themselves, so if the property was valued at \u00a3200k, the maximum loan at 75% would be \u00a3150k.\r\n<h2 id="how-can-I-get">How can I get a 100% bridging loan?<\/h2>\r\nSome lenders will offer 100% bridging loans under specific circumstances, and the key to getting one is having whole-of-market access and extra security to safeguard the loan against - without the latter, landing a bridging finance with 100% LTV is unlikely.\r\n\r\nThat extra security could be a property (or properties) you already own and have equity in. If you were to safeguard a bridging loan against them, select lenders may offer you a 100% bridging finance deal, allowing you to snap up the property without a deposit.\r\n\r\nNumerous bridging lenders will gladly allow borrowers to put up multiple securities as a way around their usual LTV cap, and other assets besides property may be considered.\r\n\r\nIf you have no other security, and no deposit, then it\u2019s unlikely a lender will offer you a bridging loan to 100% of the property value.\r\n<h3>Are there risks I should be aware of?<\/h3>\r\nWhether a 100% LTV bridging loan is a good idea depends on your needs and circumstances but there are potential pitfalls to be aware of.\r\n\r\nFor instance, if you default on the loan, whatever assets or properties you\u2019ve used as security will be at risk of repossession, plus, fees are often higher for 100% LTV bridging loans since each security asset\/property will require its own valuation.\r\n\r\nAs we\u2019ve already touched on, you will need whole-of-market access to track down the lenders willing to offer 100% bridging loans, and the <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bridging-finance\/bridging-loan-broker\/">bridging finance brokers<\/a> we work with have exactly that, so get in touch and one of them will connect you to the right provider.\r\n<h2 id="bridging-eligibility">Bridging loan eligibility<\/h2>\r\nIf you\u2019re hoping to convince a bridging finance provider to offer you a loan with a higher LTV ratio than the norm, meeting the general eligibility criteria for bridging loans always helps.\r\n\r\nBridging finance applicants are always assessed on a case-by-case basis, but the majority of lenders reserve their best rates for borrowers with the following\u2026\r\n<ul>\r\n \t<li>\u00a0<strong>A viable exit strategy:<\/strong>\r\nBridging providers often base their lending decision on the applicant\u2019s exit strategy, as this is of paramount importance. Bridging loans are offered on a short-term, interest-only basis so how you plan to settle up at the end of term is key. This usually involves a remortgage or the sale of a property, and the lender will expect you to prove that your exit plan is realistic and likely to generate enough capital to pay off the outstanding loan sum.<\/li>\r\n \t<li><strong>Clean credit:<\/strong>\r\nThis isn\u2019t a deal-breaker for some lenders, but at others, it will help you gain access to the best deals since they will view you as lower risk. Certain lenders are cautious of bridging borrowers with adverse credit if their exit strategy is to remortgage, and some are wary of the possibility of further adverse during the term.<\/li>\r\n \t<li><strong>Experience in property:<\/strong>\r\nAgain, this isn\u2019t always a deal-breaker, but some bridging lenders will view you as lower risk, and therefore offer you a better deal if you have experience in property, especially if the project is a complex development.<\/li>\r\n \t<li><strong>A good security property:<\/strong>\r\nIf your exit strategy is to sell up, expect the lender to scrutinise the primary property you\u2019re securing the loan against. They will want to determine how quickly it will sell and how much for, based on factors such as location and property type (non-standard construction is less sellable, for instance). Obviously, the quicker it will sell and the more capital it will generate, the better.<\/li>\r\n<\/ul>\r\nIf you have extra security to safeguard the loan against and meet some or all of the above criteria, your chances of landing bridging finance with 100% LTV will rise.\r\n\r\nMake an enquiry and the experts we work with will help you find the lender most likely to offer these terms to a borrower in your circumstances.\r\n<h2 id="bridging-90%">Can I get bridging finance at 85-90% LTV?<\/h2>\r\nYes, in some cases specialist lenders will consider offering deals outside of their usual loan to value parameters (around 75% max on average), and the key to convincing them to take that risk is putting up extra security and meeting their criteria, as we\u2019ve discussed above.\r\n\r\nIf you\u2019re after a bridging loan with higher LTV, get in touch and the advisors we work with will help you find the lender offering the highest percentages to borrowers in your shoes.\r\n<h2 id="bridging-loan-market-value">Taking a bridging loan at market value<\/h2>\r\nOne way to borrow above the LTV cap, without the need for additional security, is to take out bridging finance based on valuation other than the purchase cost.\r\nIt may be possible to find a lender who is willing to offer you a loan based on the property\u2019s market value.\r\n\r\nThe market value is the best price you can hope to receive for the property once it\u2019s on the open market.\r\nThe forecasted sales price is rarely an exact science, but is typically higher than the purchase price, so the amount you\u2019re able to borrow may increase.\r\n\r\nBe mindful that some surveyors provide valuations restricted to a 90 or 180-day marketing period (what price they\u2019d likely get if they had to sell it within this time).\r\n\r\nEven a bridging lender that uses the 180-day system may refuse to rubber stamp a loan if the 90-day value is too low.\r\n\r\nMake an enquiry to speak with an expert advisor for more information about how this could impact your application.\r\n<h2>Do I need a regulated or unregulated bridging loan for a higher LTV deal?<\/h2>\r\nThat all depends on the purpose of the funds and the status of the property. Regardless of the LTV, you should be aware that you will only need a regulated bridging loan if the funds are to invest a property that you either live in or are planning to live in afterwards.\r\n\r\nRegulated bridging loans are for residential properties and they are overseen by the Financial Conduct Authority (FCA), giving the borrower extra protection against mis-selling and bad advice, among other things.\r\n\r\nIf you need bridging finance for investment purposes, an unregulated loan is what you need.\r\n\r\nThese are more flexible and tailored to the needs of the individual.\r\n\r\nFor instance, if you want to purchase a <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/buy-to-let-mortgages\/">buy to let property<\/a>, an unregulated bridging finance lender may allow you to take out a loan based on rental potential, rather than your income.\r\n<h2 id="speak-to-bridging-expert">Speak to a bridging loans expert<\/h2>\r\nIf you like anything in this article or you\u2019d like to know more, call Online Mortgage Advisor today on 0808 189 2301 or <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-bridging-finance-specialist\/">make an enquiry<\/a>.\r\n\r\nThen sit back and let us do all the hard work in finding the bridging finance lender with the right expertise for somebody with your personal circumstances.\u00a0We don\u2019t charge a fee and there\u2019s absolutely no obligation or marks on your credit rating.