Bridging Loan Criteria UK

What are the standard bridging loan criteria in the UK?

The table below is the whole market in one view. Individual lenders sit either side of every line, which is the point of using a broker rather than a lender's own criteria page.

Rates and lender criteria are subject to change. Figures correct at time of publication. Always speak to your broker for up-to-date rates and lending criteria on your specific case.

How much can you borrow? LTV criteria by security type

Loan to value is the first gate every lender applies, and it is set by the security type, not the borrower. Gross LTV includes rolled-up or retained interest and fees added to the loan; net LTV is the day-one cash advance. Lenders cap the gross figure, which catches out borrowers who size their ask on the net.

The 60% line matters as much as the maximum. Borrowing within 60% LTV opens more lenders and consistently better pricing on every security type. Above 70%, documentation tightens and personal guarantees appear. More than half of the bridges we place complete at or under 65% LTV, and that is not a coincidence: experienced borrowers structure for the band, not the maximum. If you can get the case under 60%, do it. Every 5% of LTV you give up typically costs 10 to 20 basis points a month.

What loan sizes and terms do bridging lenders offer?

FD Commercial arranges bridging from £250,000 to £250 million plus. The mainstream specialist market writes individual loans from around £100,000 to £25 million or £30 million; above that, the case moves to private banks, family offices and institutional funders, which is a different process covered on the large and high-value bridging page.

Terms split by regulation. A standard regulated bridge runs to 12 months. There is no FCA cap beyond that point; past 12 months the loan simply stops being a bridging loan in Handbook terms. Borrowers meeting the FCA high net worth test, £300,000 of income or £3 million of net assets, can structure regulated bridging up to 60 months for HNW borrowers. Unregulated terms run 6 to 24 months as standard and to 36 months by agreement on development exit and planning-gain cases. Most lenders apply a minimum interest period of one to three months, so a two-week bridge still costs at least the minimum period. Check it before you sign if a fast exit is likely.

How much deposit do you need for a bridging loan?

On a purchase, the deposit is the inverse of the LTV cap: 25 to 30% of the property value in cash on a standard residential case. There are two ways the cash requirement falls. First, additional security: cross-charge another property with equity and the lender lends against the combined position, which can take the cash deposit to nil and fund 100% of the purchase price. Second, buying under value with genuine uplift: a minority of lenders will lend against open market value rather than purchase price on a true discount, though most lend against the lower of the two. Anyone promising routine "100% bridging with no security" is describing a product that does not exist. The 100% structures that do exist are all secured on something.

What exit strategy evidence do lenders require?

The exit is the single most important criterion on the page. Every bridging lender underwrites the exit before the rate, and the difference between an evidenced exit and a stated one is the difference between the prime band and the specialist band, or between approved and declined.

One operational instruction worth the whole table: evidence the exit before you apply, not during underwriting. If the exit is a sale, instruct the agent and agree the price first. If it is a refinance, have the term lender's criteria checked against your case first. "We will see how it goes" is not an exit, and cases with vague exits are the cases we find hardest to place at any price.

What property types can secure a bridging loan?

Almost anything with a UK Land Registry title and realisable value. Standard residential, flats above commercial, ex-local authority, non-standard construction, HMOs, multi-unit blocks, semi-commercial, offices, retail, industrial, hotels, care homes, pubs, petrol stations, places of worship, land with and without planning. Condition is a pricing factor, not a barrier: uninhabitable property, short leases, vacant commercial and part-built schemes are all financeable on the unregulated side, which is precisely where bridging earns its keep against term lenders who decline them outright.

What genuinely narrows the pool: defective or unregistered title, flying freeholds and severe structural issues without a works plan, properties in negative-equity positions, and Northern Ireland (most bridging lenders cover England, Scotland and Wales only, as do we). Scottish security works differently under Scots law, missives rather than exchange, and needs a lender with Scottish experience: see the auction page for how that plays out on deadline.

Who can borrow? Borrower criteria by structure

Individuals. UK residents from age 18 with no practical upper age limit on unregulated lending. Older borrowers on regulated bridging are assessed case by case, and bridging is often the product that works at ages term lenders decline.

Limited companies and SPVs. The most common structure on investment cases. No trading history or accounts required; newly incorporated SPVs are routine. Personal guarantees from directors or significant shareholders are usually required, particularly on new entities and higher LTVs.

LLPs, partnerships and trusts. All accepted by the active market. Trustee borrowing needs the trust deed reviewed early because powers to charge trust property vary.

Offshore companies and foreign nationals. Accepted where the security is UK property with UK Land Registry title. Enhanced due diligence on beneficial ownership and source of funds adds days, not weeks. A UK bank account is typically needed for serviced interest.

Income. Unregulated bridging carries no income verification: the asset and exit are the underwriting. Regulated bridging carries proportionate affordability assessment, and any case with serviced interest needs the monthly payments evidenced as affordable from income or rent.

Can you get a bridging loan with bad credit?

Usually, yes. Bridging is asset-based lending, and lenders care about credit history mainly as a signal on the exit: a borrower whose refinance exit depends on a term mortgage they cannot get because of adverse credit has an exit problem, not a credit problem. We see at least one adverse-credit bridge every quarter that a high street lender would not have opened the file on, and most of them complete without drama. CCJs, defaults, arrears and even discharged bankruptcy are placeable where the LTV is sensible, the exit does not depend on prime credit, and the story is disclosed upfront. Expect specialist-band pricing, typically 1.0% per month and above, and a smaller lender pool. What kills adverse-credit cases is not the credit, it is non-disclosure: a CCJ that surfaces in underwriting after being left off the application ends the application. Disclose everything on day one and let the broker pick the lender that prices the real case.

What documents do you need for a bridging loan application?

The standard pack, ready before approach, is what separates a 10-day completion from a 4-week one:

• Proof of identity and address for all borrowers, directors and significant shareholders
• Security property details: address, title number, tenure, current value evidence
• Purchase contract or memorandum of sale (purchases), or current mortgage statement (refinances)
• Exit strategy evidence per the table above: agent instruction, DIP, contracts, probate grant
• Schedule of works, cost plan and contractor details on refurbishment cases
• Planning permission or permitted development confirmation where works need it
• Company documents on corporate borrowing: certificate of incorporation, shareholder structure, and trust deeds where applicable
• Bank statements covering deposit funds and, on serviced interest, evidence of affordability
• Solicitor's details, instructed and ideally with bridging experience

The last line matters more than it looks. A solicitor who does not handle bridging adds a week to most files. Use one who does this work routinely, and have them instructed before terms are issued, not after.

Do regulated and unregulated bridging have different criteria?

The criteria stack is the same shape on both sides, but regulated bridging adds the FCA layer: affordability and suitability assessment, disclosure requirements, a 12-month standard term cap, and advice rules. Unregulated bridging strips that back to the asset and the exit, which is why it completes in 5 to 10 working days against two to six weeks for regulated. Which side of the line you are on is decided by the 40% occupation test, not by preference, and the full comparison is in our regulated vs unregulated guide. Current pricing for every band on this page is maintained monthly on the bridging loan rates page, and you can model your own case on the bridging loan calculator.

Frequently asked questions

What criteria do you need to meet for a bridging loan?

Acceptable security property with UK title, a loan to value within the lender's cap (typically 70 to 75% on residential, 65 to 70% on commercial), a credible and evidenced exit strategy, and a borrower structure the lender can take a charge against. Income verification is minimal on unregulated bridging. Credit history affects pricing and lender choice more than eligibility.

What is the maximum LTV on a bridging loan?

Typically 75% on standard residential first charge, 65 to 70% on commercial, and 65% on second charge. With additional security cross-charged, effective LTV on the lead asset can reach 90% through private bank routes, and 100% of a purchase price can be funded where combined security supports it. Heavy refurbishment is sized to around 70% of gross development value rather than current value.

Do bridging lenders check income?

On unregulated bridging, no: there is no income verification or affordability calculation, because the loan is underwritten on the asset and the exit. On regulated bridging, lenders run a proportionate affordability assessment under FCA rules. Any case where interest is serviced monthly needs evidence the payments are affordable from income or rental cash flow, on either side of the line.

How much deposit do I need for a bridging loan?

Typically 25 to 30% of the property value on a standard purchase, mirroring the 70 to 75% LTV cap. The cash requirement falls to nil where additional property is cross-charged as security, which is how 100% bridging finance is genuinely structured. Routine 100% bridging without any additional security does not exist in the UK market.

Can I get a bridging loan with bad credit?

Usually, yes. CCJs, defaults, arrears and discharged bankruptcy are all placeable where the LTV is sensible, the exit does not depend on obtaining prime credit, and everything is disclosed upfront. Expect pricing in the specialist band, typically 1.0% per month and above, and a smaller lender pool. Non-disclosure is what ends applications, not the credit itself.

What exit strategies do bridging lenders accept?

Sale of the security property or another property, refinance onto a term mortgage, development completion and unit sales, and receipt of documented expected funds such as probate or a business sale. All exits need evidence: agent instruction and realistic pricing for a sale, a decision in principle or criteria check for a refinance. The exit is underwritten before the rate is set.

Can a limited company or SPV get a bridging loan?

Yes, and corporate structures are the most common borrower type on investment bridging. UK and offshore companies, SPVs, LLPs, partnerships and trusts all qualify, with no trading history or accounts required. Personal guarantees from directors or significant shareholders are usually required, particularly on newly formed entities or higher LTVs.

Is there an age limit for bridging loans?

The minimum is 18. On unregulated bridging there is no practical upper age limit because the lending is asset-based. On regulated bridging, older borrowers are assessed case by case, and bridging frequently works at ages where term mortgage lenders decline, which is why it features in downsizing and later-life moves.

What documents do I need to apply for a bridging loan?

Identity and address proof, security property details and title number, the purchase contract or current mortgage statement, exit strategy evidence, a schedule of works and contractor pack on refurbishment cases, company documents on corporate borrowing, and bank statements evidencing deposit funds. A complete pack at the outset is the difference between a 10-day completion and a four-week one.

What property types are hardest to finance with bridging?

Defective or unregistered title, severe structural problems without a costed works plan, land without planning, and thin-market specialist assets such as petrol stations and places of worship. All remain financeable with the right lender at conservative LTV. Northern Ireland property is the practical exclusion: most UK bridging lenders cover England, Scotland and Wales only.

How long does a bridging loan take to arrange?

Unregulated bridging completes in 5 to 10 working days with a clean pack and an available valuation slot. Regulated bridging typically takes two to six weeks because of the advice and compliance steps. The borrower-side variables that compress the timeline are a complete document pack, an instructed solicitor with bridging experience, and exit evidence ready at application.

Does FD Commercial charge a broker fee on bridging?

No. FD Commercial charges no broker fee on bridging. We are paid by the lender on completion and hold full market access across the active UK bridging market, arranging regulated and unregulated bridging from £250,000 to £250 million plus across England, Scotland and Wales.