100% LTV Bridging Loans: What You Need to Know

Introduction

Bridging loans are a popular short-term finance solution, often used to purchase property, unlock equity, or resolve time-sensitive funding requirements. While most bridging lenders offer loans against a percentage of the property’s value (commonly 60–75% loan-to-value), there are circumstances where borrowers can secure up to 100% LTV bridging finance. This means the entire purchase price, or the full value required, can be funded by the loan.

At Global Bridging Finance, we are regularly approached by clients who want to explore whether 100% LTV bridging is possible. Below, we outline how these loans work, when they may be suitable, and the key factors lenders will consider.

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What Is a 100% LTV Bridging Loan?

A 100% loan-to-value (LTV) bridging loan is a facility where the lender covers the full value of the property or project being financed. This differs from traditional bridging loans, where borrowers contribute some of their own funds or equity.

Because this type of lending represents a higher risk for the lender, additional security is usually required, such as a second property or asset being charged alongside the main property.

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When Can a 100% LTV Bridging Loan Be Used?

100% bridging loans can be suitable in various scenarios, including:

• Auction Purchases: Where speed is critical and buyers want to fund the full purchase price.
• Refurbishment Projects: When investors plan to enhance value through renovations and refinance once completed.
• Chain Break Situations: Covering the gap when a client’s property sale falls through, but they still need to complete a purchase.
• Business Purposes: Releasing full liquidity against property to support commercial opportunities.

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How Do Lenders Assess 100% Bridging Loans?

While attractive, 100% bridging loans require careful underwriting. Lenders will consider:

• Exit Strategy: How the loan will be repaid, typically via sale or refinance.
• Security: A second or even third charge on additional properties is often required.
• Borrower Profile: Experience, track record, and financial standing.
• Valuation: Independent assessments to confirm accurate market value.

Global Bridging Finance’s expertise lies in matching clients with lenders who can structure these more complex transactions.

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Advantages of 100% Bridging Loans

• No Deposit Required: Borrowers can secure deals without tying up capital.
• Speed: Quick access to funds when opportunities are time-sensitive.
• Flexibility: Suitable for a wide range of property and business transactions.
• Liquidity: Enables clients to maintain cash reserves for other investments or expenses.

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Risks and Considerations

As with all financial products, there are considerations:

• Higher Costs: Interest rates and fees may be higher to reflect lender risk.
• Additional Security: Clients must have sufficient assets to secure the loan.
• Exit Pressure: Borrowers require a robust and realistic repayment plan.
• Market Risk: Falling property values could affect refinancing options.

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Why Work with a Specialist Broker?

100% LTV bridging loans are not standard products. Many lenders do not openly advertise them, and terms can vary significantly depending on the circumstances. Working with a broker such as Global Bridging Finance ensures:

• Access to lenders who are open to 100% LTV transactions.
• Transparent guidance on costs, risks, and suitability.
• Hands-on support to prepare applications and valuations quickly.
• Confidence that your case is positioned in the best way to secure approval.

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Conclusion

100% LTV bridging loans can unlock opportunities that would otherwise be out of reach, particularly for experienced investors or those with strong assets to offer as security. While these loans carry unique risks and requirements, they can provide powerful short-term solutions when structured correctly.

At Global Bridging Finance, we specialise in helping clients explore these complex facilities, ensuring the right lender, terms, and structure are in place. If you are considering a 100% bridging loan, our team can provide expert, tailored advice to help you achieve your goals.