Loan-to-value on a bridging loan

Loan-to-value on a bridging loan

Loan-to-value on a bridging loan depends on the security type, the planning position, and whether additional security is offered. As a guide across the market:

• Residential property: up to 90% LTV without additional security
• Regulated bridging (a home the borrower will live in): typically up to 75 to 80% LTV
• Commercial and semi-commercial property: up to 75 to 80% LTV depending on asset and valuation route
• Land: typically 50% to 70% LTV, with planning status the main driver. Land with consent or strong planning prospects attracts the higher end
• Auction purchases: up to 85% LTV on standard lots
• With additional security: up to 100% of the purchase price, achieved through a cross-charge over another property
• Below market value (BMV) purchases: lenders may advance up to 90% of open market value on a gross basis including rolled-up interest, which can equate to 100% or more of the purchase price where the discount is genuine and evidenced by valuation

The maximum for any specific case is set by the asset's marketability, the borrower's overall position, and. Above everything: the credibility of the exit.