How bridging loans are sized
Bridging lenders focus on the security and your exit plan, how you'll repay, more than your income. They cap the loan at a share of the property value, often around 70% to 75%, and lower for land or unusual properties.
That limit usually includes any interest added to the loan, so the cash you receive can be less than the maximum.
Worked example
A £400,000 property with no mortgage at a 70% limit could support a bridging loan of about £280,000. With a £150,000 mortgage on it, the extra available would be about £130,000.
Before you borrow
Bridging loans are expensive and short-term. Make sure your exit plan, such as a sale or a remortgage, is realistic.
Your home may be repossessed if you don't keep up repayments on a loan secured on it.
Inputs for the bridging loan borrowing power calculator
Property value
The value of the property used as security.
Existing borrowing secured on it
Any mortgage or loans already secured on it.
Maximum loan-to-value
The lender's maximum, often around 70% to 75%.
CALCULATOR QUESTIONS
Bridging loan borrowing power calculator questions
How much can I borrow on a bridging loan?
Often up to around 70% to 75% of the property value, minus existing borrowing.
Do bridging lenders check my income?
They focus on the property and your exit plan, though they'll still assess you.
Does the limit include interest?
Often yes, if interest is rolled up or retained, so you may receive less in cash.
What's the risk?
Your home may be repossessed if you don't keep up repayments on a loan secured on it.