How much deposit do I need to get a regulated bridging loan? Get Started Ask us a question No impact on credit score Home Bridging Finance Fca Regulated Bridging Loans How Much Deposit Do I Need To Get A Regulated Bridging Loan? Author: Pete Mugleston - Mortgage Advisor, MD Updated: August 9, 2021 A lot of people ask about the size of a deposit needed for mortgages and below, Ally asks specifically about the deposit size needed for regulated bridging loans. Rated 5 stars on Feefo Question Hi Pete, I’m hoping to use a bridging loan to buy a dilapidated property that has been dubbed ‘unmortgageable’ and renovate it myself. I’m a builder by trade, with 10 years’ experience in the industry, so I feel more than capable of carrying out the works myself. My plan is to remortgage the property once I’ve got it into a habitable state, so that should cover the exit strategy. The only issue I’ve got is the deposit. I don’t have a lot of capital to put down upfront, so what is the minimum amount of deposit I’m likely to need for a regulated bridging loan? I understand that deposit requirements for bridging finance can be steep, but is there a way I can boost my chances of approval with only a small deposit? Kind regards, Ally, Glasgow Answer Hi Ally, Thanks for your message. I’m more than happy to help. Deposit requirements for residential bridging loans are usually higher than they are for mortgages. The minimum a lender would usually expect you to put down is 30-35% of the property’s value. Bridging finance providers are known to ask for more than that if the deal carries any risk, i.e. if the exit strategy is uncertain. The good news in your case is that your background in the building industry should help convince the lender that your plans are achievable. Assuming you don’t have credit issues that could jeopardise the exit and the property is likely to be mortgageable for the required amount, there’s no reason why the lender will insist that you put down extra deposit. There is a way you could potentially get a regulated bridging loan with less than 30% deposit. It might even be possible to borrow 100% of the funds if you put up extra security, such as a property or asset that you own and hold enough equity in. Just be mindful that you could have your security property/asset repossessed if you fail to pay the bridging loan. Best of luck, Pete You can read more questions and answers about regulated bridging loans here: Can you get a Regulated Bridging Loan without any property experience? Regulated Bridging Loan with bad credit? Are Unregulated Bridging loans safe? Ask a quick question We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help. Ask us anything! * How quickly are you looking to proceed? * Please select an option Today This week This month In the next 3 months Later 1 of 3 Next What is the approximate value of the property? * £ And how much are you looking to borrow in total? * £ What is the total, approximate annual income of all applicants before tax? * £ Back 2 of 3 Next First name * Last name * Email * Phone number * Back 3 of 3 Send! Related Articles A Guide to Bridging Loans A lot of people ask about the size of a deposit needed for mortgages and below, Ally asks specifically about the deposit size needed for regulated bridging loan... First, Second and Third Charge Bridging Loans There are several different types of bridging finance available and what’s best for you will depend on a number of... A Guide to the Costs and Fees Associated with Bridging Finance Bridging loans typically come with high interest rates, so it’s important to work out the overall cost before signing on... About the author Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background. Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course! Read more about Pete Pete Mugleston Mortgage Advisor, MD Continue Reading Bridging Finance Overview Bridging mortgages Commercial bridging finance Bridging loan costs & fees Bridging loan brokers 100% bridging finance Bridge to Let Best bridging loans Bad credit bridging loans Auction finance 2nd and 3rd charge bridging loans Bridging loan application Bridging Finance for Hotels Land bridging Finance Regulated Bridging Loans Bridging Loan Calculator Development Bridging Loan Quick Bridging Loans Bridging Loan Locations Short Term Bridging Loans Large Bridging Loans Bridging Loan Lenders
