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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 11th January 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


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


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,


You can read more questions and answers about regulated bridging loans here:

Updated: 11th January 2021
OnlineMortgageAdvisor 2021 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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