Large Bridging Loans

What Is a Large Bridging Loan?

A large bridging loan provides rapid access to substantial short term funding when traditional lenders cannot complete within the required timeframe.

Specialist lenders can often provide facilities from around £1m to £25m+, depending on the project, the property security, and the borrower’s experience.

These loans are commonly used by property investors, developers, and commercial buyers who need to move quickly on high value transactions or complete projects before arranging long term finance.

Because bridging loans are short term, the exit strategy is a key part of the lender’s decision.

Lenders will assess several factors when structuring a large bridging loan, including:

• the value and type of property being used as security
• the borrower’s experience and track record
• company accounts, income, and available assets
• the strength and credibility of the exit strategy

Typical bridging loans are structured at up to around 70% to 75% loan to value against the property being purchased.

However, some lenders will consider higher leverage where additional security is available. In certain cases this can allow investors to achieve up to 100% of the purchase price, provided sufficient additional property or assets are offered as security.

Large bridging loans are often used to acquire commercial buildings, secure development sites, purchase mixed use property, or fund major refurbishment projects before refinancing.

Because loan sizes are substantial, lenders may sometimes require additional security, corporate guarantees, or personal guarantees, depending on the structure of the deal.

Professional advice can help ensure the funding is structured correctly and that the loan terms support the intended exit strategy.

Costs Involved with Large Bridging Loans

Large bridging loans involve several costs which should be considered when planning a project.

Typical costs may include:

• arrangement fees charged by the lender
• interest charged for the duration of the loan
• valuation and legal costs
• broker fees where applicable
• specialist legal fees where complex titles or multiple securities are involved

Because bridging finance is designed for short term use, the overall cost of the loan depends largely on how quickly the exit strategy is achieved.

Many investors structure bridging loans so that interest is rolled up or retained, meaning payments are settled when the loan is repaid rather than paid monthly during the project.

Experienced borrowers often work backwards from the projected profit of a project to ensure the finance remains commercially viable.

If you are comparing long-term refinancing options, our Buy to Let Mortgages page can help.

100% Bridging Finance with Additional Security

In some situations, bridging finance can be structured to cover 100% of the purchase price.

This is usually achieved by offering additional property or assets as security, allowing the lender to increase the overall leverage across the deal.

For example, an investor purchasing a property may use the property being acquired as the primary security while also offering equity in another property to support the loan structure.

This approach can allow experienced borrowers to complete acquisitions without introducing additional cash, provided sufficient security is available and the exit strategy is clear.

Each transaction is assessed individually, so the exact structure will depend on the property, the borrower’s experience, and the overall strength of the deal.

Ready to Discuss Your Project?

If you are considering a large bridging loan or want guidance on structuring finance for a high-value project, the GPS Financial team is ready to support you. With whole-of-market access, we secure transparent, ethical solutions tailored to your exit strategy.
Call us on 029 2267 7707 or visit www.gpsfinancial.co.uk to get started.