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Can you get 100% bridging finance?

bridging finance Jan 10, 2021

THE QUESTION

Can you recommend somebody who can help me with 100% bridging finance?

THE ANSWER

If you mean where you put nothing into the deal, that is not how bridgers work, except in exceptional circumstances. They always want a safety net built in so they can sell off the property quickly, if they need to, and recoup their money. 

This means for virtually every deal you need to put up the balance of what they will lend with cash.  Usually bridgers will lend 75% on residential properties and you have to put in the rest.  With commercial properties is it usually no more than 70%, but can sometimes be even lower. 

Most bridgers lend against the purchase price but there are a few that lend against value

There are exceptions to you need to put in a cash deposit:

  1. If you are buying a property at something like 40% below the asking price, a few bridgers will lend on the asking price and your discount will be your deposit 
  2. If you already own a property with no (or a low) mortgage on it and you put this up as additional security 

So if you want 100%: 

  1. How much below the asking price are you buying it? 
  2. What property do you already own that fits the criteria? 

If you can’t answer meet either of these criteria satisfactorily, you won’t get 100% bridging and will need to put some cash in.

You can learn more here:

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