Most bridging lenders cap the gross loan at around 75% loan to value, which points to a deposit of around 25%. In practice, because interest and fees are usually retained from the advance, the cash you need is often nearer 30% — though equity in other property can reduce it, sometimes to nothing.
The headline numbers
- Standard bridging: commonly up to around 75% LTV — a deposit of around 25% before costs.
- In practice: with costs and retained interest deducted from the advance, plan for around a 30% deposit on a typical purchase.
- Purchase-and-refurbish: borrowers often work nearer 55%–65% LTV, putting in a larger deposit and keeping headroom for the works.
- Regulated bridge (your own home): most lenders cap at around 65% to 70% — but cross-charging can take the structure to 100% where the equity supports it.
Why the real figure runs above the headline LTV
A bridging lender quotes a gross loan, then deducts the rolled-up interest and the arrangement fee before the money reaches you. The cash that arrives — the net advance — is what actually funds your purchase, and it sits below the headline 75%. That is why a 25%-on-paper deposit becomes around 30% in practice: your cash has to cover the part of the purchase the net advance does not. Our bridging loan calculator shows the deduction on your own numbers, and our bridging loan costs guide itemises each fee.
Using equity instead of cash
Bridging is asset-based, and lenders can take security across more than one property. Where properties in your portfolio carry unused equity, that equity can be put to work through a cross-charge: the lender takes a charge over the property being purchased and a second charge over your existing properties (or a first charge if they are unencumbered). Structured that way, the equity covers the deposit and you put no cash into the purchase — the worked example on our auction bridging page shows a £100,000 purchase funded exactly this way.
The same structure powers the regulated side: where you are buying an onward home and selling your existing one, with enough equity in the current property, a regulated bridge can be cross-charged to reach 100% loan to value, or slightly more where the equity allows — leaving you to cover only legal and valuation fees.
What the lender looks at
Less your payslips, more the deal: the property's value and condition, the loan-to-value you are asking for, and above all the exit — how the loan comes back. A larger deposit (or more pledged equity) lowers the lender's risk and generally improves the terms on offer; a thin deposit narrows the lender list. Credit history matters less than on a mortgage, but the exit still has to survive scrutiny.
Frequently asked questions
Can I get a bridging loan with no deposit?
Sometimes, if you hold equity elsewhere. The lender can take a charge over the property being purchased and a second charge over your existing properties (or a first charge if they are unencumbered), so the equity covers the deposit and you put no cash into the purchase. On a regulated bridge, cross-charging can take the loan to 100% loan to value, or slightly more where the equity allows.
How much deposit do I need for a bridging loan on a buy to let?
Most lenders go to around 75% gross on the bridging portion. With costs and retained interest deducted from the advance, plan for around a 30% deposit in practice. See buy-to-let bridging for the full picture.
Does bad credit change the deposit on a bridging loan?
Bridging is led by the asset and the exit rather than a clean credit file, so credit issues narrow the lender choice and can raise the rate and fees rather than automatically raising the deposit. The structure is decided case by case — and the exit still has to be viable.
Is the deposit different when buying at auction?
The mechanics are the same, but the deadline is tighter. As an example from our auction guide: on a £100,000 auction purchase where the lender advances 65%, you would normally need to find a £35,000 deposit — unless equity in your other properties is cross-charged to cover it.
Talk to an adviser
Tell us the property, your cash position and what equity you hold elsewhere, and we will set out the structure that needs the least cash without straining the deal. Call 020 7126 8574 or request a call back — we aim to reply within one working day.
Your property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. Most bridging loans on investment property are not regulated by the Financial Conduct Authority.
Propertyze is a trading style of City Finance Brokers Ltd, authorised and regulated by the Financial Conduct Authority, FCA No. 766295.
Related bridging finance
Bridging loans · Buy-to-let bridging · Regulated bridging · Bridging loan costs