100% LTV Bridging Loans: Funding Without an Upfront Deposit

100% LTV Bridging Loans: Unlocking Full Property Value with No Upfront Capital

For clients looking to secure short-term finance without tying up large amounts of capital, a 100% Loan-to-Value (LTV) bridging loan can be a highly effective solution. These loans allow borrowers to access the full purchase price of a property, without the need to provide a cash deposit upfront.

Bridging loans are a type of secured loan, typically backed by property or other high-value assets, similar to other secured loans such as mortgages. Secured loans generally offer larger loan amounts and lower interest rates compared to unsecured options, but they also carry the risk of losing the collateral if repayments are missed.

This type of finance is particularly appealing for those with strong asset portfolios or high-value security, allowing them to seize investment opportunities without disrupting liquidity. Most lenders usually cap LTV at 75%, but with additional security, 100% LTV bridging loans are possible. If you are wondering "how much can I borrow" with a 100% LTV bridging loan, the answer is that you may be able to borrow up to the full value of the property, provided you can offer sufficient additional security.

What Are 100% LTV Bridging Loans?

A 100% LTV bridging loan means the lender provides funding equivalent to the full purchase price of a property. Because offering a loan without a cash deposit increases lender risk, additional security is often required. These arrangements are typically secured against:

• An additional residential or commercial property
• A portfolio of investment assets
• Other tangible, high-value security
• A clear and reliable exit strategy (e.g. imminent property sale or refinance)

In some cases, second charge bridging loans may be used when there are one or more loans already secured on the property.

This structure allows clients to leverage the equity in one or more existing assets to complete a new purchase without liquidating holdings or waiting for other transactions to complete. A charge bridging loan can be structured as either a first or second charge, depending on whether other loans are already secured against the property. Loans secured by property, such as charge loans, determine the order of repayment in the event of default. The presence of other loans or mortgages on the property can affect the type and structure of bridging finance available.

Types of Bridging Finance: Where 100% LTV Fits In

Bridging finance is a versatile tool, offering a range of solutions to meet different property and investment needs. The most common types of bridging loans include open bridging loans and closed bridging loans. Open bridging loans are ideal for borrowers who need flexibility, as they do not have a fixed repayment date, while closed bridging loans are suited to those with a set exit strategy and a clear timeline for repayment.

The loan-to-value (LTV) ratio is a key factor in determining how much you can borrow. Most bridging loan lenders typically offer up to 75% LTV, but in certain circumstances, such as when additional security is provided, some lenders may consider 100% LTV bridging loans. This makes them particularly attractive to property investors looking to maximise leverage without tying up cash.

When exploring your options, it’s important to compare bridging loans from different lenders, as terms, rates, and lending criteria can vary widely. Understanding the types of bridging available and where 100% LTV fits in will help you select the right bridging loan for your property purchase or investment strategy. Whether you’re seeking a short term loan for a chain break or looking to fund a new property acquisition, working with an experienced lender can make all the difference.

How 100% LTV Bridging Works in Practice

For example, a client might wish to purchase a residential property valued at approximately £1.2 million but does not want to use cash for the deposit. In this case, they may use their current property, with substantial equity, as additional collateral to secure the loan. With this in place, the lender may be comfortable providing a lump sum equivalent to the full £1.2 million as a 100% LTV bridging loan, enabling immediate completion.

The loan could then be repaid through the sale of an asset, such as the current property, a remortgage, or other pre-agreed exit route.

Bridging Loan Costs and Fees: What to Expect

Understanding the full cost of a bridging loan is essential before committing to any agreement. Bridging loan lenders typically charge a product fee, which is usually between 1% and 3% of the total loan amount. In addition to this upfront fee, interest rates on bridging loans are generally higher than those of traditional mortgages, and are often quoted as monthly rates rather than annual percentages.

Beyond the headline rates, borrowers should also budget for legal fees, valuation fees, and potential exit fees, which are payable when you repay the loan. Some lenders may include additional fees for arranging the loan or for specific services, so it’s important to review all terms carefully. The total bridging loan cost will depend on the loan amount, the loan term, and the specific lender’s fee structure.

To get a bridging loan that meets your needs, it’s wise to consult a specialist lender who can explain all the costs involved and help you compare bridging loans from various providers. This ensures you understand the true cost of borrowing and can plan your finances accordingly, avoiding any surprises down the line.

Key Advantages of 100% LTV Bridging Loans

• No Deposit Required: Ideal for clients wishing to preserve cash flow for business or investment purposes.
• Fast Completion: Provides quick access to funds, making it especially valuable for auction finance and other time-sensitive property transactions, such as auctions or competitive sales.
• Enhanced Flexibility: Allows for bespoke structuring using multiple assets and tailored repayment terms.
• Strategic Capital Use: Maintain financial agility while still moving quickly on high-value property acquisitions, supporting timely property purchases and business expansion.

Who Might Use a 100% LTV Bridging Loan?

100% LTV bridging loans are best suited for experienced investors, high-net-worth individuals, and clients with access to multiple assets. Scenarios where they are commonly used include:

• Property Developers: Leveraging existing portfolios to acquire new sites or development opportunities, including both residential and commercial properties.
• Investors: Quickly securing off-market or auction properties without relying on cash deposits.
• Business Owners: Releasing equity to fund operational expansion or acquisitions.
• International Buyers: Accessing UK property opportunities without the delay of transferring overseas funds.

Even clients with bad credit may be eligible for 100% LTV bridging loans if sufficient security is provided. Mainstream banks and high street lenders may not offer 100% LTV options, making specialist bridging finance a valuable alternative. Approval is often based on individual circumstances, with lenders assessing each case on its own merits.

Eligibility and Application Process

Securing a bridging loan requires meeting certain eligibility criteria and following a structured application process. Lenders will typically look for a clear exit strategy, a suitable property or asset to secure the loan, and a reasonable credit history. The application process involves providing detailed information about your property purchase, the loan amount required, and your personal or business financial background.

A bridging lender will usually conduct a credit check and arrange for a professional valuation to determine the loan to value ratio. For commercial bridging loans or more complex cases, additional documentation or steps may be required, such as business plans or evidence of planning permission.

To improve your chances of approval and ensure you get the right bridging loan, it’s advisable to work with a reputable lender or seek professional advice. They can help you understand the lending criteria, prepare the necessary paperwork, and guide you through the process, whether you’re a property investor, a business owner seeking expansion, or an individual dealing with a chain break in a property transaction. Having a clear exit strategy and a strong application will help you secure the best possible terms for your bridging finance needs.

The Importance of a Strong Exit Strategy

A key component of a successful 100% LTV bridging loan is a credible and well-documented exit strategy. Lending decisions for 100% LTV bridging loans are made on a case by case basis, with particular attention to the proposed exit strategy and the borrower's individual circumstances. Lenders need assurance that the loan can be repaid in full within the agreed term, which is typically between 3 and 12 months.

Exit routes often include:

• The sale of the secured property
• Sale of an alternative asset
• Secured remortgage or long-term finance
• Settlement from other confirmed income sources

Without a clear exit plan, securing 100% LTV bridging finance is unlikely, even with strong additional security, as this makes the loan a higher risk for lenders and reduces the likelihood of approval.

Working with a Specialist Broker

Securing a 100% LTV bridging loan is more complex than traditional lending. It requires:

• Careful structuring to ensure loan-to-value ratios and security conditions are met
• Accurate valuation and presentation of all collateral assets, noting that a legal charge will be registered against the property as part of the security process
• A clear and achievable exit plan

At Global Bridging Finance, we specialise in navigating high-LTV cases and working with lenders that understand and accept these risk profiles. Our expertise means we can secure finance options that many clients would struggle to obtain through traditional lenders.

We work closely with our clients to understand their wider financial picture and ensure the structure of the loan aligns with both short-term and long-term objectives. When evaluating offers, we consider interest rate options, including fixed rate bridging loans for those seeking predictable repayments.

Final Thoughts

A 100% LTV bridging loan offers a valuable route for clients who need to act quickly and strategically, without committing large amounts of capital upfront. When structured correctly with the right support, it can unlock opportunities that would otherwise be out of reach.

Get in Touch

If you're considering a 100% LTV bridging loan, contact Global Bridging Finance for a confidential, no-obligation consultation. We can help you structure the right deal, secure the right lender, and access funds fast.