100% Bridging Loan: How It Works and When It Makes Sense

In the world of specialist property finance, speed and flexibility are often more valuable than headline rates. For investors and developers looking to move quickly, a 100% bridging loan can provide the leverage required to secure an opportunity without injecting additional cash into the transaction.

But despite the name, a 100% bridging loan does not mean “no security” or “no risk.” It simply refers to the dealis structure.

This guide explains how 100% bridging loans work, who they are suitable for, and the key considerations before proceeding.

What Is a 100% Bridging Loan?

A 100% bridging loan allows a borrower to fund the entire purchase price of a property, typically by using additional security.

Rather than lending 100% of a property’s value on a single asset, lenders will often:

• Secure a first charge against the new purchase
• Take additional security over another property (or multiple properties)
• Blend loan-to-values across assets to remain within acceptable risk thresholds

This structure allows investors to acquire property without tying up liquidity, which can be critical in competitive markets such as auctions or off-market transactions.

When Are 100% Bridging Loans Used?

100% bridging loans are commonly used in the following scenarios:

Auction Purchases

Exchange deadlines of 28 days leave little room for conventional mortgage approvals. Investors may leverage equity in existing property to secure the full purchase price quickly.

Refurbishment Projects

Developers preserving capital for renovation works may structure 100% funding to maintain cash flow flexibility.

Chain Breaks

High-net-worth buyers may choose not to liquidate assets or sell existing property immediately, instead leveraging equity temporarily.

Portfolio Expansion

Experienced landlords with strong equity positions can use cross-collateralisation to grow portfolios without deploying additional capital.

How Is Risk Managed?

Despite the appeal of 100% funding, lenders remain cautious. Risk is assessed through:

• Combined loan-to-value (CLTV) across all security
• Asset quality and marketability
• Borrower experience and track record
• Clear, credible exit strategy

The exit strategy is fundamental. Most 100% bridging loans exit via:

• Sale of the acquired property
• Refinance onto a buy-to-let or commercial mortgage
• Sale or refinance of the additional security property

Without a defined and realistic exit, lenders will not proceed.

Advantages of a 100% Bridging Loan

Preserves Liquidity
Capital can be retained for refurbishment, business investment, or diversification.

Speed of Execution
Bridging loans can be completed in a matter of days or weeks.

Competitive Positioning
Cash-backed offers are often more attractive to vendors.

Portfolio Leverage
Existing equity works harder without the need for disposal.

Key Considerations

A 100% bridging loan is not suitable for every borrower. Important factors include:

• Exposure across multiple assets
• Market conditions affecting resale or refinance
• Short-term nature of bridging finance
• Cost versus opportunity value

This is specialist funding and requires careful structuring. Incorrectly structured cross-collateralisation can create unnecessary complexity later.

Is a 100% Bridging Loan Right for You?

For experienced investors and developers with substantial property equity, a 100% bridging loan can be a strategic tool rather than simply a funding option.

It enables speed, leverage, and flexibility, three factors that often determine success in competitive property markets.

However, it should always be approached with a clear exit plan and professional guidance to ensure the structure supports long-term objectives.