LTV, Asset Class and Exit Strategy – The Three Numbers That Set Your Limit
Most borrowers will be looking at between 65% and 75% LTV on a bridging loan. On a £400,000 property that’s £260,000 to £300,000. Rates start from 0.55% per month, and loans run from £50,000 to £25 million-plus based on the lender plus the asset.
Three factors set the final number: the property itself, your exit strategy, and how cleanly the case gets presented to the right lender.
Bridging is nothing like applying for a residential mortgage. Lenders aren’t running affordability calculations against your income. They’re assessing asset quality and the credibility of your exit. Get those two right and the borrowing figure falls into place. For the current monthly rate ranges by asset class, see our current UK bridging loan rates. A bridging loan calculator gives you a quick steer on costs and interest before applying, but the real borrowing capacity is set by the lender’s view of your specific deal.
Typical LTV Ranges: 65%-75%
LTV (loan-to-value) is the percentage of the property’s value a lender is prepared to advance. The maximum varies by asset class. Here’s how it breaks down across the most common bridging deal types:
| Property Type | Typical Max LTV | Rate From |
| Residential investment | 75% | 0.55%/month |
| Commercial property | 65% | 0.75%/month |
| Semi-commercial | 70% | 0.70%/month |
| Land (with planning) | 60% | 0.85%/month |
| Heavy refurbishment | 65% (of GDV) | 0.80%/month |
These are maximums, not promises. On real cases, lenders trim the LTV on higher-risk property. An empty commercial unit in a secondary location might come back at 55-60% LTV even from a specialist lender. A clean residential investment property with a BTL refinance exit will usually reach the full 75%.
One detail trips borrowers up regularly: LTV is calculated on the lower of purchase price or the lender’s independent valuation. If you paid £350,000 at auction and the surveyor values the property at £320,000, the loan is based on £320,000 – not what you paid. This single point causes more deposit shortfalls than any other factor in bridging, and it’s especially common on auction bridging finance cases where bidders win on the day and only discover the valuation gap later.
If your deal sits at the higher LTV end of the table, see our page on bridging loan 75% LTV criteria for the exact requirements that have to line up to hit those numbers.
What Lenders Actually Look At
Mortgage lenders care about income. Bridging loans work on different ground. Lenders barely glance at income – that doesn’t mean they’ll lend to anyone with a deposit and a story; the assessment runs on a different set of priorities. Four factors carry almost all the weight on a bridging decision.
Property quality. Lenders are sizing up how saleable the asset would be if they had to recover their loan in 3-6 months. Standard residential investment property in good condition, in a market with active demand, gets the best terms. Non-standard construction, structural problems, properties in low-demand areas, or anything that would be hard to sell quickly all push the LTV down and the rate up.
Exit strategy. This is the single biggest variable in any bridging case. The lender needs a clear path showing how you’re going to repay the loan – and they need evidence, not assertions. A buy-to-let refinance exit needs a rental appraisal and ideally an agreement in principle from the refinancing lender. A sale exit needs realistic valuation proof and a solid marketing plan. A vague or unsupported exit gets priced harder, sized smaller, or declined outright. For a deeper look at the two main approaches, see our page on bridging loan exit strategies.
Loan term. Bridging loans typically run 3 to 18 months. Shorter terms with credible exits secure the sharpest pricing. A 6-month bridge with a named buyer and signed contract is a completely different risk profile from an 18-month bridge waiting on planning permission and a speculative development exit. The same lender will price those two cases worlds apart.
Background and experience. First-time bridging borrowers are absolutely workable – most specialist lenders run cases for newcomers regularly. But experienced investors with a track record of successful exits will routinely get higher LTVs and lower rates on equivalent deals. The premium for experience shows up in the pricing. For the full set of qualifying criteria, see our page on bridging loan requirements.
If any one of these four factors is weak, the lender either widens their pricing or trims the LTV. If two are weak, the deal usually doesn’t fund. For a deeper look at the specific patterns behind common rejections, see our page on why bridging loans get declined.
Net Loan vs Gross Loan
This is one of the most misunderstood points in bridging – and it catches borrowers out regularly.
When a lender quotes you a £300,000 facility, that’s usually the gross loan: the full amount on paper. But if you’ve opted for rolled-up interest (where the monthly interest accrues against the loan rather than paid each month), the lender takes those payments off the loan on day one. What lands in your account is the net loan – and it’s noticeably smaller.
Here’s how it works on a typical case:
- Gross facility: £300,000
- Rate: 0.70% per month
- Term: 9 months
- Interest reserve (rolled up): £18,900
- Arrangement fee (1.5%): £4,500
- Solicitor and valuation fees: approximately £1,500
- Net funds on day one: approximately £275,100
If you’ve budgeted on the headline £300,000 figure, you’re nearly £25,000 short before the deal completes. That’s enough to derail a purchase if the deposit was calculated on the gross.
Three things to nail down ahead of signing any term sheet:
Is the rate quoted “gross of fees” or “net of fees”? Some bridging lenders advertise a sharp headline rate that climbs once arrangement and exit fees are factored in.
Is interest rolled up, retained, or serviced? Rolled-up interest is deducted on day one. Retained interest is set aside in a reserve account. Serviced interest is paid monthly from your own cashflow. Each affects your net advance differently.
What are the exit fees? Certain lenders apply an exit fee of 1-2% of the loan on top of arrangement fees. Others don’t. On a £300,000 facility, a 1% exit fee is £3,000 – worth knowing about upfront.
A good broker bundles property data, valuation evidence, plus the exit route before submission. Lenders move faster and price sharper when they’re not chasing missing information – which matters most on time-critical cases like chain break bridging loans where completion timing can make or break the deal.
Calculating borrowing capacity during a UK bridging loan assessment.
Example Deals – Real Numbers
Three walk-throughs of how borrowing actually plays out across the main deal types. Run your own scenario through our bridging loan calculator to model the figures against your specific property and exit.
Deal 1: Residential Investment – BTL Refinance Exit
A landlord buying a single-let house in the North West, planning to refinance onto a long-term BTL mortgage once the property is tenanted and seasoned.
| Detail | Amount |
| Property value (RICS) | £425,000 |
| Max LTV (75%) | £318,750 |
| Rate | 0.60%/month (rolled) |
| Term | 6 months |
| Total interest cost | £11,475 |
| Arrangement fee (1.5%) | £4,781 |
| Net funds received | ~£302,494 |
| Exit | Refinance onto 5-year BTL fix |
A clean, straightforward case. Residential investment with a documented refinance exit hits the full 75% LTV at the sharpest end of bridging pricing.
Deal 2: Commercial Unit – Sale Exit
An investor acquiring a vacant commercial unit at auction, with plans to secure a tenant and sell the property as an investment within 9 months.
| Detail | Amount |
| Purchase price | £280,000 |
| Lender valuation | £265,000 |
| Max LTV (65%) | £172,250 |
| Rate | 0.85%/month (rolled) |
| Term | 9 months |
| Total interest cost | £13,137 |
| Exit | Sale after tenant secured |
Two things to note. First, the lender valued the property £15,000 below the purchase price, which trimmed the loan from where the borrower might have expected. Second, commercial property attracts a lower LTV cap and a higher rate than residential – even on a strong deal.
Deal 3: Refurbishment Bridge – GDV-Based Lending
A developer buying a tired residential property below market value, refurbishing it, and refinancing onto a residential mortgage at the higher post-works valuation.
| Detail | Amount |
| Purchase price | £190,000 |
| Estimated GDV post-refurb | £310,000 |
| Loan (65% of GDV) | £201,500 |
| Rate | 0.80%/month (rolled) |
| Term | 12 months |
| Refurb budget funded separately | £45,000 (tranche release) |
| Exit | Refinance onto residential mortgage |
Deal 3 shows something important. When a property is acquired below market value, or the value will rise substantially through works, some lenders size the facility against GDV (gross development value) rather than purchase price. That can release significantly more capital – £11,500 above the purchase price in this case – but only with a robust schedule of works, a credible contractor, and a realistic GDV figure backed by comparables.
Brass keys handed over on a UK commercial property secured with bridging finance.
Frequently Asked Questions
What is the most I can borrow on a bridging loan?
There’s no fixed cap – some lenders write deals at £25 million-plus on the right asset. The bulk of UK bridging loans fall between £100,000 and £5 million in practice.
The limiting factor isn’t a hard loan-size ceiling – it’s the LTV the lender will commit to for your particular property and exit route.
Can I borrow 100% of the purchase price?
Not against the purchased property on its own. Some borrowers reach 100% of the purchase price by cross-charging a second property as additional security.
That second property needs sufficient equity, and the lender will value both assets before issuing terms.
Does my income affect how much I can borrow on a bridging loan?
Not in the way a mortgage does. Most bridging lending is asset-led – the property and exit carry the assessment.
The exception is regulated bridging where the security is your main residence, which the FCA requires to be affordability-assessed. On commercial and investment bridging, income matters less than asset quality and exit credibility.
Can I increase my borrowing partway through the term?
Yes – through what’s called a further advance or facility extension. If circumstances change mid-deal – refurb costs run over, completion gets delayed, additional capital is needed – most bridging lenders will consider a top-up.
The answer comes down to whether there’s headroom against the original LTV and how the broader case is progressing. It’s faster and cheaper than refinancing onto a new bridge.
How does rolled-up interest affect my loan amount?
The lender deducts the projected interest from the loan on day one. On a £300,000 facility at 0.70%/month for 9 months, the interest reserve is £18,900
. You receive roughly £281,100 net at completion. Different lenders calculate this slightly differently – always confirm the net advance before accepting terms.
Will the property type affect my borrowing limit?
Yes – sharply. Residential investment property typically gets the highest LTVs (up to 75%) and the lowest rates. Commercial caps at around 65%. Semi-commercial sits in between at 70%.
Land with planning is usually 60% and refurbishment GDV-based deals top out at 65% of post-works value. The same borrower can get very different borrowing on different asset types.
What if the valuation comes in lower than expected?
The loan is based on the surveyor’s figure, not your estimate.
If the valuation falls short, you have three options: accept the smaller loan and cover the difference yourself, dispute the figure with comparable evidence, or take the case to another lender who may use a different surveyor. We deal with this regularly and can usually identify the right path within a day.
How quickly can I find out how much I can borrow?
A specialist broker can give you an indicative figure within hours. The figure is based on property details, your exit strategy, and a brief financial overview.
Formal terms follow once the lender’s underwriter sees the case, usually within 24-48 hours.
Find Out How Much You Can Borrow
The fastest way to get a realistic borrowing figure is a 10-minute call with a specialist. We’ll size up the property, stress-test your exit strategy, and place the case with the right lender – usually within 24-48 hours of first contact.
Commercial Finance Network is a whole-of-market commercial finance broker. We work with clients across the UK and internationally, placing bridging, commercial mortgage, development finance, and asset finance cases with the lenders most likely to approve them on the sharpest terms.
Call: +44 1494 622 111
Email: info@cfnuk.com
We’re directly authorised and regulated by the Financial Conduct Authority. Same-day indicative terms available on most cases.
LTV, Asset Class and Exit Strategy – The Three Numbers That Set Your Limit
Most borrowers will be looking at between 65% and 75% LTV on a bridging loan. On a £400,000 property that’s £260,000 to £300,000. Rates start from 0.55% per month, and loans run from £50,000 to £25 million-plus based on the lender plus the asset.
Three factors set the final number: the property itself, your exit strategy, and how cleanly the case gets presented to the right lender.
Bridging is nothing like applying for a residential mortgage. Lenders aren’t running affordability calculations against your income. They’re assessing asset quality and the credibility of your exit. Get those two right and the borrowing figure falls into place. For the current monthly rate ranges by asset class, see our current UK bridging loan rates. A bridging loan calculator gives you a quick steer on costs and interest before applying, but the real borrowing capacity is set by the lender’s view of your specific deal.
Typical LTV Ranges: 65%-75%
LTV (loan-to-value) is the percentage of the property’s value a lender is prepared to advance. The maximum varies by asset class. Here’s how it breaks down across the most common bridging deal types:
| Property Type | Typical Max LTV | Rate From |
| Residential investment | 75% | 0.55%/month |
| Commercial property | 65% | 0.75%/month |
| Semi-commercial | 70% | 0.70%/month |
| Land (with planning) | 60% | 0.85%/month |
| Heavy refurbishment | 65% (of GDV) | 0.80%/month |
These are maximums, not promises. On real cases, lenders trim the LTV on higher-risk property. An empty commercial unit in a secondary location might come back at 55-60% LTV even from a specialist lender. A clean residential investment property with a BTL refinance exit will usually reach the full 75%.
One detail trips borrowers up regularly: LTV is calculated on the lower of purchase price or the lender’s independent valuation. If you paid £350,000 at auction and the surveyor values the property at £320,000, the loan is based on £320,000 – not what you paid. This single point causes more deposit shortfalls than any other factor in bridging, and it’s especially common on auction bridging finance cases where bidders win on the day and only discover the valuation gap later.
If your deal sits at the higher LTV end of the table, see our page on bridging loan 75% LTV criteria for the exact requirements that have to line up to hit those numbers.
What Lenders Actually Look At
Mortgage lenders care about income. Bridging loans work on different ground. Lenders barely glance at income – that doesn’t mean they’ll lend to anyone with a deposit and a story; the assessment runs on a different set of priorities. Four factors carry almost all the weight on a bridging decision.
Property quality. Lenders are sizing up how saleable the asset would be if they had to recover their loan in 3-6 months. Standard residential investment property in good condition, in a market with active demand, gets the best terms. Non-standard construction, structural problems, properties in low-demand areas, or anything that would be hard to sell quickly all push the LTV down and the rate up.
Exit strategy. This is the single biggest variable in any bridging case. The lender needs a clear path showing how you’re going to repay the loan – and they need evidence, not assertions. A buy-to-let refinance exit needs a rental appraisal and ideally an agreement in principle from the refinancing lender. A sale exit needs realistic valuation proof and a solid marketing plan. A vague or unsupported exit gets priced harder, sized smaller, or declined outright. For a deeper look at the two main approaches, see our page on bridging loan exit strategies.
Loan term. Bridging loans typically run 3 to 18 months. Shorter terms with credible exits secure the sharpest pricing. A 6-month bridge with a named buyer and signed contract is a completely different risk profile from an 18-month bridge waiting on planning permission and a speculative development exit. The same lender will price those two cases worlds apart.
Background and experience. First-time bridging borrowers are absolutely workable – most specialist lenders run cases for newcomers regularly. But experienced investors with a track record of successful exits will routinely get higher LTVs and lower rates on equivalent deals. The premium for experience shows up in the pricing. For the full set of qualifying criteria, see our page on bridging loan requirements.
If any one of these four factors is weak, the lender either widens their pricing or trims the LTV. If two are weak, the deal usually doesn’t fund. For a deeper look at the specific patterns behind common rejections, see our page on why bridging loans get declined.
Net Loan vs Gross Loan
This is one of the most misunderstood points in bridging – and it catches borrowers out regularly.
When a lender quotes you a £300,000 facility, that’s usually the gross loan: the full amount on paper. But if you’ve opted for rolled-up interest (where the monthly interest accrues against the loan rather than paid each month), the lender takes those payments off the loan on day one. What lands in your account is the net loan – and it’s noticeably smaller.
Here’s how it works on a typical case:
- Gross facility: £300,000
- Rate: 0.70% per month
- Term: 9 months
- Interest reserve (rolled up): £18,900
- Arrangement fee (1.5%): £4,500
- Solicitor and valuation fees: approximately £1,500
- Net funds on day one: approximately £275,100
If you’ve budgeted on the headline £300,000 figure, you’re nearly £25,000 short before the deal completes. That’s enough to derail a purchase if the deposit was calculated on the gross.
Three things to nail down ahead of signing any term sheet:
Is the rate quoted “gross of fees” or “net of fees”? Some bridging lenders advertise a sharp headline rate that climbs once arrangement and exit fees are factored in.
Is interest rolled up, retained, or serviced? Rolled-up interest is deducted on day one. Retained interest is set aside in a reserve account. Serviced interest is paid monthly from your own cashflow. Each affects your net advance differently.
What are the exit fees? Certain lenders apply an exit fee of 1-2% of the loan on top of arrangement fees. Others don’t. On a £300,000 facility, a 1% exit fee is £3,000 – worth knowing about upfront.
A good broker bundles property data, valuation evidence, plus the exit route before submission. Lenders move faster and price sharper when they’re not chasing missing information – which matters most on time-critical cases like chain break bridging loans where completion timing can make or break the deal.
Calculating borrowing capacity during a UK bridging loan assessment.
Example Deals – Real Numbers
Three walk-throughs of how borrowing actually plays out across the main deal types. Run your own scenario through our bridging loan calculator to model the figures against your specific property and exit.
Deal 1: Residential Investment – BTL Refinance Exit
A landlord buying a single-let house in the North West, planning to refinance onto a long-term BTL mortgage once the property is tenanted and seasoned.
| Detail | Amount |
| Property value (RICS) | £425,000 |
| Max LTV (75%) | £318,750 |
| Rate | 0.60%/month (rolled) |
| Term | 6 months |
| Total interest cost | £11,475 |
| Arrangement fee (1.5%) | £4,781 |
| Net funds received | ~£302,494 |
| Exit | Refinance onto 5-year BTL fix |
A clean, straightforward case. Residential investment with a documented refinance exit hits the full 75% LTV at the sharpest end of bridging pricing.
Deal 2: Commercial Unit – Sale Exit
An investor acquiring a vacant commercial unit at auction, with plans to secure a tenant and sell the property as an investment within 9 months.
| Detail | Amount |
| Purchase price | £280,000 |
| Lender valuation | £265,000 |
| Max LTV (65%) | £172,250 |
| Rate | 0.85%/month (rolled) |
| Term | 9 months |
| Total interest cost | £13,137 |
| Exit | Sale after tenant secured |
Two things to note. First, the lender valued the property £15,000 below the purchase price, which trimmed the loan from where the borrower might have expected. Second, commercial property attracts a lower LTV cap and a higher rate than residential – even on a strong deal.
Deal 3: Refurbishment Bridge – GDV-Based Lending
A developer buying a tired residential property below market value, refurbishing it, and refinancing onto a residential mortgage at the higher post-works valuation.
| Detail | Amount |
| Purchase price | £190,000 |
| Estimated GDV post-refurb | £310,000 |
| Loan (65% of GDV) | £201,500 |
| Rate | 0.80%/month (rolled) |
| Term | 12 months |
| Refurb budget funded separately | £45,000 (tranche release) |
| Exit | Refinance onto residential mortgage |
Deal 3 shows something important. When a property is acquired below market value, or the value will rise substantially through works, some lenders size the facility against GDV (gross development value) rather than purchase price. That can release significantly more capital – £11,500 above the purchase price in this case – but only with a robust schedule of works, a credible contractor, and a realistic GDV figure backed by comparables.
Brass keys handed over on a UK commercial property secured with bridging finance.
Frequently Asked Questions
What is the most I can borrow on a bridging loan?
There’s no fixed cap – some lenders write deals at £25 million-plus on the right asset. The bulk of UK bridging loans fall between £100,000 and £5 million in practice.
The limiting factor isn’t a hard loan-size ceiling – it’s the LTV the lender will commit to for your particular property and exit route.
Can I borrow 100% of the purchase price?
Not against the purchased property on its own. Some borrowers reach 100% of the purchase price by cross-charging a second property as additional security.
That second property needs sufficient equity, and the lender will value both assets before issuing terms.
Does my income affect how much I can borrow on a bridging loan?
Not in the way a mortgage does. Most bridging lending is asset-led – the property and exit carry the assessment.
The exception is regulated bridging where the security is your main residence, which the FCA requires to be affordability-assessed. On commercial and investment bridging, income matters less than asset quality and exit credibility.
Can I increase my borrowing partway through the term?
Yes – through what’s called a further advance or facility extension. If circumstances change mid-deal – refurb costs run over, completion gets delayed, additional capital is needed – most bridging lenders will consider a top-up.
The answer comes down to whether there’s headroom against the original LTV and how the broader case is progressing. It’s faster and cheaper than refinancing onto a new bridge.
How does rolled-up interest affect my loan amount?
The lender deducts the projected interest from the loan on day one. On a £300,000 facility at 0.70%/month for 9 months, the interest reserve is £18,900.
You receive roughly £281,100 net at completion. Different lenders calculate this slightly differently – always confirm the net advance before accepting terms.
Will the property type affect my borrowing limit?
Yes – sharply. Residential investment property typically gets the highest LTVs (up to 75%) and the lowest rates. Commercial caps at around 65%. Semi-commercial sits in between at 70%.
Land with planning is usually 60% and refurbishment GDV-based deals top out at 65% of post-works value. The same borrower can get very different borrowing on different asset types.
What if the valuation comes in lower than expected?
The loan is based on the surveyor’s figure, not your estimate.
If the valuation falls short, you have three options: accept the smaller loan and cover the difference yourself, dispute the figure with comparable evidence, or take the case to another lender who may use a different surveyor. We deal with this regularly and can usually identify the right path within a day.
How quickly can I find out how much I can borrow?
A specialist broker can give you an indicative figure within hours. The figure is based on property details, your exit strategy, and a brief financial overview.
Formal terms follow once the lender’s underwriter sees the case, usually within 24-48 hours.
Find Out How Much You Can Borrow
The fastest way to get a realistic borrowing figure is a 10-minute call with a specialist. We’ll size up the property, stress-test your exit strategy, and place the case with the right lender – usually within 24-48 hours of first contact.
Commercial Finance Network is a whole-of-market commercial finance broker. We work with clients across the UK and internationally, placing bridging, commercial mortgage, development finance, and asset finance cases with the lenders most likely to approve them on the sharpest terms.
Call: +44 1494 622 111
Email: info@cfnuk.com
We’re directly authorised and regulated by the Financial Conduct Authority. Same-day indicative terms available on most cases.
Related Pages
- Refurbishment Loans – bridging and short-term finance for light and heavy refurbishment projects, including GDV-based lending
- Development Finance – specialist lending for property developers from groundworks through to completion
- Commercial Mortgages – the most common long-term exit route once a bridged property is stabilised or tenanted
- Auction Finance – fast-turnaround bridging structured to meet 28-day auction completion deadlines