Most <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bridging-finance\/bridging-loan-lenders\/">bridging loan lenders<\/a> don\u2019t have a strict maximum amount that they\u2019re willing to let eligible customers borrow, which is good news for anyone who needs a large amount of finance quickly. If you\u2019re in the market for a large bridging loan, this guide is for you.\r\n\r\nSeeking professional advice is highly recommended if you\u2019re planning to take out a hefty amount of <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bridging-finance\/">bridging finance<\/a>, and in this article, you\u2019ll learn everything you need to know about large bridging loans and how to find a broker who specialises in them. Plus in our FAQ section, we tackle the questions we hear most often about large bridging loans.\r\n<ul>\r\n \t<li><a href="#what-is">What is a large bridging loan?<\/a><\/li>\r\n \t<li><a href="#get">How to get a large bridging loan<\/a><\/li>\r\n \t<li><a href="#charged">How interest is charged<\/a><\/li>\r\n \t<li><a href="#expert">Speak to an expert about large bridging loans<\/a><\/li>\r\n \t<li><a href="#faqs">FAQs<\/a><\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="what-is">What is a large bridging loan?<\/h2>\r\nBridging loan sizes can vary dramatically. While some bridging finance lenders will class <b>anything over \u00a32.5 million<\/b> as a large loan, other providers arrange much larger deals than this every day. Bridging loans worth tens of millions are not uncommon, and it may even be possible to borrow up to \u00a3250 million under the right circumstances.\r\n\r\nThe key thing to remember about bridging finance is that they're short-term loans and the amount you can borrow is largely governed by the strength of the exit strategy or, to put it another way, how you plan to pay off the bridging loan.\r\n\r\nIf your exit strategy will recoup the amount you need to borrow and cover the interest charges, the sky\u2019s pretty much the limit for the amount you could potentially borrow. Since most bridging lenders are not regulated, they have the flexibility to assess all applications on a case-by-case basis.\r\n<h3>What are they used for?<\/h3>\r\nLarge bridging loans are most commonly used for investing in high-value property where timing is of the essence.\r\n\r\nHere are some example scenarios\u2026\r\n<ul>\r\n \t<li><b>Buying a high-value property at auction: <\/b>Winning bidders usually need to exchange contracts and pay a deposit on the day and then pay the remaining amount within 28 days. In a scenario like this, a mortgage might take too long to arrange, but a specific type of bridging product called <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bridging-finance\/auction-finance\/">auction finance<\/a> could give you the capital needed ahead of the deadline.<\/li>\r\n \t<li><b>Renovating an uninhabitable property: <\/b>Let\u2019s say you want to buy a dilapidated property and a plot of land that\u2019s worth over \u00a32.5 million, despite the extensive work that is needed. If a mortgage lender believes that the property is uninhabitable, you may not be able to get a traditional mortgage on it. A bridging loan, however, could provide you with the funds needed to make the property mortgageable again. You could then <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/commercial-mortgages\/mortgages-for-land\/">take out a land mortgage<\/a> to pay off the bridging loan.<\/li>\r\n \t<li><b>Heavy refurbishment work: <\/b>You might already own a property and want to invest \u00a32.5 million or more into refurbishments. Using a bridging loan would allow you to start the works quickly and borrow against the property\u2019s increased value via a <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/remortgages\/remortgage-guide\/">remortgage<\/a> to pay off the debt after the renovations have been completed. For projects involving extensive development work, your broker might suggest considering <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/development-finance\/a-guide-to-development-finance\/">development finance<\/a> as an alternative to bridging finance.<\/li>\r\n \t<li><b>Buying land without planning permission: <\/b>Perhaps you want to get a mortgage on a plot of land that is worth a hefty amount but has no planning permission in place. Some mortgage providers might decline to lend under these circumstances, and there might be a cash buyer ready to pip you to the purchase. But by using a bridging loan, you could secure the plot before applying for planning permission. Once it\u2019s been granted, you could apply for a mortgage to cover the exit strategy.<\/li>\r\n<\/ul>\r\nThese are just a few common scenarios where somebody might use a large bridging loan, but they have many other uses. In a nutshell, if you\u2019re looking to make a large property investment but don\u2019t have the time to arrange a mortgage, don\u2019t want to take one out, or won\u2019t qualify for one in the short term, bridging finance could be a fallback option.\r\n<h2 id="get">How to get a large bridging loan<\/h2>\r\nIf you\u2019re making a large investment and need a sizable amount of bridging finance, there could be a lot at stake, so be sure to seek professional advice before proceeding. Bridging loans tend to come with high interest rates and are often only recommended as a last resort.\r\n\r\nBridging loan providers can be large organisations or small \u2018private\u2019 investors willing to look at bridging loans on a case-by-case basis.\r\n\r\nWith this in mind, it\u2019s a good idea to start off by speaking with a specialist bridging finance broker who can help you determine whether it\u2019s the right option, suggest potential alternatives, and make sure you end up with the best possible deal if you choose to proceed.\r\n\r\nIf the amount you need to borrow is especially high, you\u2019ll need to find a bridging lender who specialises in high value transactions, and a broker who arranges these deals every day can introduce you to the right finance provider first time, potentially saving you time and money.\r\n\r\nTo qualify for a large bridging loan, you will need the following\u2026\r\n<h3>A strong exit strategy<\/h3>\r\nHaving a viable exit strategy is usually a deal-breaker for bridging finance lenders, and this is certainly true when it comes to high value transactions. The exit strategy is basically how you plan on paying off the debt at the end of the term. Where property is concerned, this would usually be through a remortgage or the proceeds from a sale.\r\n\r\nLet\u2019s say you need to borrow \u00a33 million to purchase a house before a rival buyer gets in there. The property you\u2019re buying would have to sell for at least this amount if you\u2019re planning to offload it, or be able to raise this figure via a remortgage.\r\n\r\nBridging finance lenders like to see evidence that this is the case, so it obviously helps if you have an offer on the table already and a formal valuation has been carried out.\r\n<h3>Clean credit<\/h3>\r\nThis isn\u2019t an absolute necessity but it will help your cause and give you access to a wider range of bridging finance lenders than somebody who\u2019s had credit problems. Bad credit is usually only a deal-breaker if it puts the exit strategy at risk.\r\n\r\nYou can read more in our <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bridging-finance\/bad-credit-bridging-finance\/">guide to bad credit bridging loans<\/a>.\r\n<h3>Experience in property<\/h3>\r\nFor a high-value deal or complex development project, some bridging loan lenders will insist that you have experience in property. Having a strong track record in the industry will help you convince bridging finance providers that you have the know-how to achieve your plans.\r\n\r\nIf you have little or no experience in property, a deal might still be possible as there are specialist lenders for first-time investors, commercial developer and landlords.\r\n<h3>A healthy deposit<\/h3>\r\nMost bridging loan lenders will expect you to put down at least 30-35% of the property\u2019s value as a deposit, but for high value or high-risk deals, you might find this rises to 40%. Putting down extra may give you access to more lenders and better interest rates.\r\n<h2 id="charged">How interest is charged<\/h2>\r\nIf you\u2019re planning to take out a substantial bridging loan, it\u2019s important to weigh up the overall cost involved, which means tallying up how much the interest will add to the debt.\r\n\r\nInterest on bridging finance is typically charged in one of three ways\u2026\r\n<ul>\r\n \t<li><b>Monthly: <\/b>Similar to an <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/interest-only-mortgages\/">interest-only mortgage<\/a>, the borrower makes payments to cover the interest each month and the loan balance is due at the end of the term.<\/li>\r\n \t<li><b>Rolled up: <\/b>Often chosen by borrowers who will have no capital until their exit strategy pays out. No interest payments are due during the term. Instead, the monthly interest is compounded and added to the final debt amount.<\/li>\r\n \t<li><b>Deferred: <\/b>The customer borrows the interest along with the loan amount. No monthly payments are needed but full amount payable is agreed at the beginning of the term, based on how many months\u2019 worth of interest you\u2019ve borrowed.<\/li>\r\n<\/ul>\r\n<h2 id="expert">Speak to an expert about large bridging loans<\/h2>\r\nIf you\u2019re considering taking out a large bridging loan, the best place to start is by speaking to a professional. We offer a free broker-matching service that can pair you with the right bridging loans specialist for your needs and circumstances.\r\n\r\nThe advisor we introduce you to will be a fully-vetted expert who specialises in large bridging loans and arranges them for customers with the same background as you every day. Speaking to an expert before you press ahead will mean you\u2019re introduced to the right lender first time, saving you time, money and potential heartache in the long run.\r\n\r\nCall 0808 189 2301 or <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-bridging-finance-specialist">make an enquiry online<\/a> and we\u2019ll match you with the broker who is best positioned to help you get a large bridging loan with the best rates available.\r\n<h2 id="faqs">FAQs<\/h2>\r\nGot a question about large bridging loans that we haven\u2019t covered so far? Take a look through our FAQ section to find out whether it has the information you need.\r\n<h3>What\u2019s the largest bridging loan I could get?<\/h3>\r\nThis all depends on the strength of your exit strategy. If you can prove that it\u2019s likely to raise a certain amount by the end of the term you\u2019re willing to commit to, it may be possible to convince a bridging finance lender to let you borrow that figure.\r\n\r\nJust keep in mind that some bridging loan providers have maximum loan amounts, and this can vary greatly. Some cap the amount at tens of thousands, others tens of millions, and a minority will even go up to hundreds of millions under the right circumstances.\r\n<h3>Can I get a large bridging loan if I trade as a limited company?<\/h3>\r\nYes. Trading as a limited company won\u2019t hurt your chances of getting a large bridging loan and the rates are usually no different. The lender might, however, require a personal guarantee from the company\u2019s directors and, in some cases, your choice of approachable lenders might be higher if your business is a special purpose vehicle (SPV).\r\n<h3>Can I get a large bridging loan anywhere in the UK?<\/h3>\r\nAlmost anywhere. Some bridge finance lenders have minimum deal values so high that only properties in London qualify. In Scotland and Northern Ireland, meanwhile, you might find some geographic restrictions in places like the Highlands or away from the mainland. Deals might be available on a case-by-case basis, though.