---
title: "Bridging Loans: How Much Can I Borrow? | Gross vs Net"
description: "How much can you borrow on a bridging loan? Loan-to-value by security, gross vs net advance, retained interest, extra security and the exit test."
url: "https://mortgagelane.com/short-term-finance/how-much-can-i-borrow"
site: "Mortgage Lane"
collection: "mortgages"
date: "2026-10-12"
author: "Joseph Lane"
category: "Bridging finance"
reviewed: "2026-10-12"
reading_time: "10 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---
# Bridging Loans: How Much Can I Borrow? | Gross vs Net
How much can you borrow on a bridging loan? Loan-to-value by security, gross vs net advance, retained interest, extra security and the exit test.
## Bridging Loans: How Much Can I Borrow?
How much can you borrow on a bridging loan? Loan-to-value by security, gross vs net advance, retained interest, extra security and the exit test.
[Net bridging advance](https://mortgagelane.com/definitions?term=net-bridging-advance)
Bridging finance
The money available from a bridging loan after deductions such as fees and retained interest.
[Read the full definition of Net bridging advance](https://mortgagelane.com/definitions?term=net-bridging-advance)
## Talk to an adviser about bridging loans: how much can i borrow?
Speak to a Mortgage Lane adviser about your options.
## At a glance
How much you can borrow on a [bridging loan](https://mortgagelane.com/definitions#def-bridging-loan) is set by three limits: the lender's maximum loan-to-value for the property type, the amount your exit — a sale or refinance — can repay, and the deductions taken from the loan on day one. Lenders quote a [gross loan](https://mortgagelane.com/definitions#def-gross-loan), which includes the [arrangement fee](https://mortgagelane.com/definitions#def-product-fee) and, on most bridges, the interest for the term, so the cash you receive — the [net advance](https://mortgagelane.com/definitions#def-net-loan) — is lower than the headline figure. Residential property usually supports the highest loan-to-value; commercial property and land support less. Offering a second property as additional security, or borrowing against the value after works, can raise the loan, but only if the exit can repay it.
## How Mortgage Lane can help
Mortgage Lane arranges bridging for buyers, investors, developers and homeowners — chain breaks, auctions, refurbishments, conversions, and business needs — sizing the loan on the security and the exit before you commit to a purchase.
## What decides how much you can borrow?
**A bridging lender lends a percentage of the security's value, capped by its maximum gross loan-to-value, and sized so that the planned exit repays the full [redemption figure](https://mortgagelane.com/definitions#def-redemption-statement).** The loan is secured by a [first charge](https://mortgagelane.com/definitions#def-charge-priority), and sometimes second charges on other property. Regulated bridging — secured on a home the borrower or a related person lives in — must also have a credible repayment strategy under the FCA's [MCOB](https://www.handbook.fca.org.uk/handbook/MCOB/) rules. See [bridging loans](https://mortgagelane.com/short-term-finance/bridging-loans).
## Rates
**How the pricing is built:** bridging is priced as a monthly rate by loan-to-value and property type; a higher loan-to-value costs more. The headline loan includes fees and usually [retained interest](https://mortgagelane.com/definitions#def-deducted-interest), so the comparison is the net advance and total cost to the expected exit.
## Criteria
*Criteria*
| Criterion | Value |
| --- | --- |
| Residential property | Higher gross LTV |
| Commercial and semi-commercial | Lower gross LTV |
| Land with planning | Lower again |
| Land without planning | Lowest, case by case |
| Value basis | Current market value; some lenders on purchase price if lower |
| Gross loan includes | Arrangement fee; retained or rolled interest |
| Additional security | Second charge on other property accepted by many lenders |
| Works funding | Day-one loan plus staged works, capped by value after works |
| Exit | Must repay the gross redemption figure |
*Criteria vary by lender and must be checked for your application.*
## Loan-to-value by security type
*Loan-to-value by security type*
| Security | Typical position |
| --- | --- |
| Residential, first charge | Highest bridging loan-to-values |
| Residential, second charge | Lower, behind an existing mortgage |
| Commercial / semi-commercial | Lower than residential |
| Land with planning | Lower again |
| Land without planning | Lowest |
*Maximum loan-to-values depend on the lender and the security.* The lower the value's certainty and liquidity, the lower the loan-to-value.
## Gross and net advance
**The gross loan is the total debt on day one; the net advance is what reaches you.** From the gross loan the lender deducts the arrangement fee and, on a retained-interest bridge, the interest for the term. Valuation and legal fees are usually paid separately. [Rolled-up interest](https://mortgagelane.com/definitions#def-rolled-up-interest) is added to the debt monthly instead of being deducted, so the net advance is higher but the redemption figure grows. [Serviced interest](https://mortgagelane.com/definitions#def-serviced-interest) is paid monthly and not deducted at all.
## Ways to borrow more
- **Additional security** — a second charge on another property you own.
- **Value after works** — some lenders fund works in stages against the improved value.
- **Serviced interest** — paying interest monthly leaves more of the gross loan as net advance.
- **100% funding** — sometimes possible against additional security or a sufficiently discounted purchase where the lender accepts [market value](https://mortgagelane.com/definitions#def-open-market-value). This is different from borrowing 100% of the security’s value.
## The exit caps the loan
**A lender will not lend more than the exit can repay.** A refinance exit is tested against the term lender's loan-to-value and rental or income test; a sale exit against realistic sale value and timescale. See [remortgaging after a bridging loan](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan).
## How it works
01
### Step 1
Property, value and exit reviewed.
02
### Step 2
Gross loan sized to the lender's loan-to-value and the exit.
03
### Step 3
Deductions calculated to show the net advance.
04
### Step 4
Additional security added if needed.
05
### Step 5
Terms issued, valuation, legal work and completion.
## Gross £300,000, net less: the arithmetic
**An illustrative £400,000 residential property, bridged at a 75% gross loan-to-value for twelve months with interest retained.**
### Illustrative figures
*Gross £300,000, net less: the arithmetic*
| Item | Amount |
| --- | --- |
| Gross loan at 75% | £300,000 |
| Arrangement fee at 2% (illustrative) | £6,000 |
| Retained interest, 12 months (illustrative lump) | £24,000 |
| Net advance | £270,000 |
| Adding £250,000 of other property as security, combined value £650,000 at 70%, before existing secured debt | Total secured borrowing £455,000 |
*Illustrative; fee, interest and loan-to-values are illustrative assumptions, not available product terms. Not an offer of finance.*
The borrower receives £30,000 less than the headline loan. Additional security may raise the borrowing limit, but any existing mortgage on it reduces the headroom. £455,000 is the combined debt ceiling in this example, not an extra advance; the exit must cover all borrowing being repaid.
### What decides the case
Size the loan on the net advance you need and the exit that will repay the gross figure.
**Related reading:** [bridging loans](https://mortgagelane.com/short-term-finance/bridging-loans); [bridging loan agreement in principle](https://mortgagelane.com/short-term-finance/agreement-in-principle); [remortgaging after a bridging loan](https://mortgagelane.com/short-term-finance/remortgage-after-bridging-loan).
## Regulation and the property used as security
Regulation depends on the borrower, the security, its intended use and any applicable exemption. A loan to an individual or trustees secured on land used or intended for use as a dwelling may fall within the [regulated mortgage](https://mortgagelane.com/definitions#def-regulated-mortgage) rules; business lending has additional exclusions. Ask the adviser to confirm the classification before proceeding.
## Sources and further guidance
- [FCA guidance on regulated mortgage contracts](https://handbook.fca.org.uk/handbook/perg4)
## Related mortgages and guides
## Bridging calculator
Illustrative estimates only. Use the lender’s proposed figures; this calculator does not assess eligibility or guarantee an offer.
Explore your borrowing
Start again
Enter your figures in pounds. Your estimate updates as you go.
Indicative maximum loan
\-
Enter your figures to see an estimate.
Loan to value
[Discuss your options](https://mortgagelane.com/contact)
Indicative estimate only, subject to lender criteria and valuation. This is not a mortgage offer. Your property may be repossessed if you do not keep up repayments.
## Bridging Loans: How Much Can I Borrow? FAQs
**Q: How much can I borrow on a bridging loan?**
faq-id: short-term-finance-how-much-can-i-borrow-how-much-can-i-borrow-on-a-bridging-loan
How much you can borrow depends on the lender's maximum loan-to-value for the property type, the amount your exit can repay, and the fees and interest deducted up front. Residential property supports the highest loan-to-values; commercial property and land support less.
**Q: What loan-to-value can I get on a bridging loan?**
faq-id: short-term-finance-how-much-can-i-borrow-what-loan-to-value-can-i-get-on-a-bridging-loan
Bridging loan-to-values depend on the security: residential property on a first charge supports the highest, second charges and commercial property lower, and land lower again. The maximum is applied to the gross loan, including fees and retained interest.
**Q: Is the maximum loan-to-value based on the gross or net loan?**
faq-id: short-term-finance-how-much-can-i-borrow-is-the-maximum-loan-to-value-based-on-the-gross-or-net-loan
Bridging loan-to-value is usually measured on the gross loan, which includes the arrangement fee and any retained interest. The net advance you receive is therefore a lower percentage of the property's value than the headline loan-to-value.
**Q: Can I borrow against land with a bridging loan?**
faq-id: short-term-finance-how-much-can-i-borrow-can-i-borrow-against-land-with-a-bridging-loan
You can borrow against land, but lenders offer lower loan-to-values than on buildings, and lower again without planning permission, because land value is less certain and harder to sell. Land with planning is usually bridged as a step towards [development finance](https://mortgagelane.com/definitions#def-development-finance).
**Q: Can I borrow against commercial property with a bridge?**
faq-id: short-term-finance-how-much-can-i-borrow-can-i-borrow-against-commercial-property-with-a-bridge
Commercial and semi-commercial property can secure a bridging loan at loan-to-values lower than residential, reflecting the property's liquidity and the tenant or trading position. The exit is usually a [commercial mortgage](https://mortgagelane.com/definitions#def-commercial-mortgage) or sale.
**Q: Does the lender use the purchase price or valuation?**
faq-id: short-term-finance-how-much-can-i-borrow-does-the-lender-use-the-purchase-price-or-valuation
Bridging lenders use the [lender's valuation](https://mortgagelane.com/definitions#def-mortgage-valuation), and on a purchase many use the lower of the price and the valuation. Some lend against a valuation above a discounted purchase price, such as at auction, which can increase the loan.
**Q: What is the difference between gross and net bridging loans?**
faq-id: short-term-finance-how-much-can-i-borrow-what-is-the-difference-between-gross-and-net-bridging-loans
The gross loan is the total debt on day one, including the arrangement fee and any retained interest; the net loan is the cash you actually receive after those deductions. Comparing lenders on net advance shows what you can really fund.
**Q: What is retained interest on a bridging loan?**
faq-id: short-term-finance-how-much-can-i-borrow-what-is-retained-interest-on-a-bridging-loan
Retained interest is interest for the whole term calculated at the start and deducted from the gross loan, so there are no monthly payments. It reduces the net advance, and any unused interest may be refunded on early repayment, depending on the lender.
**Q: What is rolled-up interest?**
faq-id: short-term-finance-how-much-can-i-borrow-what-is-rolled-up-interest
Rolled-up interest is added to the loan each month rather than deducted at the start or paid monthly, so the net advance is higher but the debt grows over the term. The full amount is repaid on exit.
**Q: What is serviced interest on a bridging loan?**
faq-id: short-term-finance-how-much-can-i-borrow-what-is-serviced-interest-on-a-bridging-loan
Serviced interest is paid monthly, like a mortgage, so it is not deducted from the loan. It maximises the net advance but requires income to meet the payments throughout the term.
**Q: What fees reduce the amount I receive?**
faq-id: short-term-finance-how-much-can-i-borrow-what-fees-reduce-the-amount-i-receive
The arrangement fee and any retained interest are usually deducted from the gross loan. Valuation, legal and broker fees are often paid separately, and some lenders charge an [exit fee](https://mortgagelane.com/definitions#def-exit-fee) on repayment, which adds to the redemption figure.
**Q: Can I use another property as additional security?**
faq-id: short-term-finance-how-much-can-i-borrow-can-i-use-another-property-as-additional-security
Many lenders accept a second charge on another property you own as additional security, increasing the combined value and so the gross loan. It puts that property at risk too, so the exit must be secure.
**Q: Can I get 100% bridging finance?**
faq-id: short-term-finance-how-much-can-i-borrow-can-i-get-100-bridging-finance
A bridge can sometimes fund 100% of a purchase price with additional security, or on a discounted purchase where the lender accepts a higher market valuation. The total debt must still fit the lender’s loan-to-value limits, and fees or retained interest can leave a cash contribution to pay.
**Q: Can a bridge fund refurbishment costs too?**
faq-id: short-term-finance-how-much-can-i-borrow-can-a-bridge-fund-refurbishment-costs-too
Some bridging lenders fund refurbishment in stages after completion, released against inspections, with the total loan capped by a percentage of the value after works. Light refurbishment bridges suit cosmetic work; heavier works suit development finance.
**Q: Can I borrow against the value after works?**
faq-id: short-term-finance-how-much-can-i-borrow-can-i-borrow-against-the-value-after-works
Some lenders lend against the expected value after works, capping the total loan at a percentage of that value while limiting the day-one advance to a percentage of the current value. A [monitoring surveyor](https://mortgagelane.com/definitions#def-monitoring-surveyor) confirms progress before each release.
**Q: How does the exit affect how much I can borrow?**
faq-id: short-term-finance-how-much-can-i-borrow-how-does-the-exit-affect-how-much-i-can-borrow
The exit caps the loan: a lender will not lend more than a refinance or sale can repay, including rolled-up interest and fees. A refinance is tested against the term lender's loan-to-value and rental or income test.
**Q: Can I borrow more if I pay the interest monthly?**
faq-id: short-term-finance-how-much-can-i-borrow-can-i-borrow-more-if-i-pay-the-interest-monthly
Paying interest monthly — servicing it — means it is not deducted from the loan, so more of the gross loan reaches you as net advance. You need income to cover the monthly payments throughout the term.
**Q: Does my income affect how much I can borrow on a bridge?**
faq-id: short-term-finance-how-much-can-i-borrow-does-my-income-affect-how-much-i-can-borrow-on-a-bridge
For unregulated bridging, income matters mainly for serviced interest and for the exit, such as a [buy to let](https://mortgagelane.com/definitions#def-buy-to-let-mortgage) or residential [remortgage](https://mortgagelane.com/definitions#def-remortgage). For regulated bridging on your home, the lender must be satisfied with your repayment strategy.
**Q: What is the minimum bridging loan?**
faq-id: short-term-finance-how-much-can-i-borrow-what-is-the-minimum-bridging-loan
Minimum bridging loans vary by lender, from relatively small amounts to larger minimums at specialist lenders, and fixed costs such as valuation and legal fees make very small bridges expensive relative to the amount borrowed.
**Q: Is there a maximum bridging loan amount?**
faq-id: short-term-finance-how-much-can-i-borrow-is-there-a-maximum-bridging-loan-amount
Larger bridging loans are available from specialist and private lenders, often into the millions, with larger loans assessed individually on the security, the borrower's experience and the exit. Maximums vary by lender.
## Need to know your maximum?
Get in touch with the property, any other property you own and your exit, and we will show your gross loan, net advance and the cash you need.
Let’s talk property finance
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Published: 2026-10-12
Last reviewed: 2026-10-12
Source: https://mortgagelane.com/short-term-finance/how-much-can-i-borrow