100% LTV Bridging Loans

Most lenders that offer bridging loans don't offer 100% LTV – this is a very niche and specialist part of the bridging market. Lenders like to share risk with borrowers, which is why you'll usually have to put forward a deposit when you raise finance. Because you have your own equity in the deal, you are effectively sharing the risk with a lender because you stand to lose your own money if you can't meet repayments or your exit – this comes on top of losing the property you use as collateral. 

100% bridging loans are available, however, but not everyone will qualify. Only the borrowers that lenders define as 'high quality' and very financially secure can access this type of loan. Usually, you will be eligible if you have a very strong credit history, assets and a financial background (usually supported by significant liquidity) that supports the deal. 

The risk associated with 100% bridging loans is such that most lenders that operate in the space don't promote or advertise their services. While many borrowers want a bridging loan with 100% LTV because it's practical and useful, the reality is that this isn't a good option for most individuals – for various reasons. Broadly speaking, for most mainstream borrowers, it's actually much better to have a deposit to put forward as it reduces risk and what you'll pay your lender to be able to borrow in terms of rate. You stand more to lose if you take out a 100% LTV loan, and it's also much easier to get into financial difficulty if you can't make repayments or exit. This is why most lenders only offer 100% bridge loans to the best borrowers who can easily afford this kind of finance, usually because they have significant assets or property portfolios and lots of liquidity. Lenders will usually only consider offering 100% bridging loans to borrowers when this type of finance is simply a question of financial and cash flow management rather than because the borrower can't get funds together for a deposit, which is worth bearing in mind.  

The lenders that offer 100% bridging loans don't usually advertise or promote their services to avoid being flooded with requests from borrowers who aren't a good match for this type of finance. Most 100% bridging loan lenders work exclusively with brokers or intermediaries like Global Bridging Finance, who will only put forward suitable applications for them to consider and have also assessed the borrower as being suitable for this type of finance. 

As a result, it's usually only possible to get this type of finance when you work with a broker. We have access to all the lenders on the market that offer these loans. If you meet lenders' criteria and you are a good fit for this type of finance, we can arrange loans in just a couple of weeks or less. 

If you are eligible for a 100% bridging loan will usually depend on why you want to access such a high LTV loan and your broader financial background. Lenders consider each of these loans on a case-by-case basis, and there aren't fixed lending criteria, although your finances, rationale for taking this type of loan, exit and plans will make a big difference to whether lenders will offer you a loan or not. 

100% bridging finance won't usually be possible just because you don't want to save up for a deposit or if you don't have enough income to support borrowing. You should always borrow responsibly, and the higher the LTV, the more risk there is in any kind of loan. While a 100% bridge finance might look good on paper, it's not the answer to serious financial challenges. These loans also shouldn't be a consideration if it's not affordable or because you haven't planned your finances in a way that allows you to make the purchase you want. 

It's also worth noting that even if you are eligible for this type of finance, there are still lending criteria to consider. The lenders that offer 100% bridge loans generally won't accept a borrower that doesn't put any security forward at all, so usually, you'll need to provide security in the form of another property or other assets like securities. You'll usually get the best deal working with an intermediary, explaining clearly to lenders why you want this type of loan and your rationale for such a high LTV. Lenders will want to understand why you want a 100% bridge loan, and how clearly you explain to them and support your reasoning will support your case, so this is something that will facilitate this type of loan in most cases.