Bridging loan LTV explained: gross, day-one and GDV caps

Last reviewed: 5 October 2026

BridgingLoans.online is an independent UK introducer operated by PASECOM GROUP LTD (company 17139327, ICO ZC117546). We do not lend and we do not advise. Nothing on this page is a quote, an MCOB illustration or an offer of credit.

What is the maximum LTV on a bridging loan?

Loan-to-value (LTV) is the loan divided by the value of the property used as security. On a bridging loan it is the first limit a lender applies, and the maximum depends mainly on the type of security rather than on the borrower. Public guides published in 2026 describe broadly similar caps, summarised below.

Guidance only. Not our rates. Not lender terms. Indicative market caps as at 5 October 2026.

Source: FD Commercial public guide “Bridging Loan Criteria UK 2026”, accessed 5 October 2026. Market average: Bridging Trends Q2 2026 contributor data put the average bridging LTV at 55%, up from 52% in Q1, as reported by Bridging & Commercial on 25 August 2026. Individual lenders sit either side of every line.

Two points sit behind that table. First, the average loan is well inside the maximum: the Q2 2026 market average of 55% is about 20 points below the residential cap. Second, LTV and price move together. Borrowing at a lower LTV usually opens more lenders and better terms, so the maximum is a ceiling, not a target. For specific asset types see commercial bridging loans and land bridging finance.

Is bridging LTV measured on the gross loan or the cash you receive?

Usually on the gross loan. The net loan is the cash released to you or your solicitor. The gross loan adds the arrangement fee when it is added to the loan and the interest retained for the term. Most institutional bridging lenders apply their cap to the gross figure, so a “75% LTV” headline does not mean 75% of value in cash.

This guide is about working backwards from a cap to the cash and deposit you will need. If you want the step-by-step net-to-gross calculation itself, read net vs gross bridging loan: how to calculate. Always confirm which definition a lender uses before you plan a deposit, because a few lenders quote net LTV or calculate fees differently.

Worked example: how much cash does a 75% gross cap release?

Take a £500,000 residential property, a 12-month retained bridge, the calculator’s teaching defaults of 0.85% a month and a 2% arrangement fee, and a lender cap of 75% gross. The largest gross the lender would allow is £375,000. Working backwards, the largest net that keeps the gross within that cap is about £333,600.

Indicative educational example using this site’s calculator method: fee = net × 2%; interest = (net + fee) × 0.85% × months; gross = net + fee + interest. The 0.85% a month and 2% fee are teaching defaults, not our rates and not a quote. Valuation, legal and broker costs are not included.

So a “75% LTV” bridge releases £333,600, or 66.7% of value, in cash. The other £41,379.74 of the facility is the fee and the retained interest. If you were buying at £500,000, that leaves a cash deposit of £166,400 before stamp duty, legal fees, valuation and any broker fee, which are not included here. The working-back formula used in this guide, consistent with the calculator, is:

maximum net = (cap × value) ÷ ((1 + fee rate) × (1 + monthly rate × months))

At these defaults that is (0.75 × £500,000) ÷ (1.02 × 1.102), rounded down to the nearest £100. Put your own value, term and rate into the bridging loan calculator and it will flag a gross LTV above 75%.

How does the term change the cash a cap allows?

Retained interest sits inside the cap, so every extra month of term uses up borrowing capacity. On the same £500,000 property and a 75% gross cap:

Calculator method at 0.85% a month and a 2% fee on net, both teaching defaults rather than our rates. Net rounded down to the nearest £100. Purchase costs not included.

The trade-off is real. A shorter term releases more cash, but if the sale or refinance slips, an extension costs more and may not be offered. Choose a term that survives a realistic delay rather than the shortest one that fits the cap. See exit strategies for bridging finance.

How do lower caps on commercial property and land change the deposit?

The same arithmetic applies at lower caps. Here is the maximum net cash on a £500,000 security over 12 months at different gross caps:

Same calculator method and defaults. Illustrative only; real pricing is usually higher on commercial and land, which would lower these figures further.

Because commercial and land caps start lower, retained interest takes a bigger share of what is available. That is one reason lenders and borrowers sometimes use serviced interest, a second property as additional security, or a shorter term on these assets. The interest types guide shows how serviced interest keeps the gross closer to net plus fee.

What are day-one LTV and loan to GDV?

On refurbishment and development-style bridges, lenders often use two limits at once:

• Day-one LTV is the initial advance as a share of the property’s current value, before any works.
• Loan to GDV (gross development value) is the total facility, including works money released in stages, as a share of the expected value once the works are finished.

Public guides in 2026 describe residential property needing works as funded at about 70%–75% of current value on day one, with heavier refurbishment sized to around 70% of GDV. The illustration below applies a 70% figure to both limits. It is arithmetic on example values, not lender terms.

The GDV limit only helps if the valuer agrees the end value and the works are costed and achievable. Works money is usually released in arrears after a monitoring surveyor inspects, so you need cash to start each stage. More detail is on the heavy refurbishment loans page, and finished schemes awaiting sale are covered under development exit finance.

Which value do lenders use for LTV on a purchase?

Most lenders use the lower of the purchase price and the independent valuation. If you agree £500,000 and the valuer says £470,000, a 75% gross cap now applies to £470,000, and the cash you can borrow falls with it. A minority of lenders will lend against open-market value on a genuine discount, but they want evidence for the discount. On auction purchases a down-valuation lands after the hammer has fallen, so build a margin into the deposit. See auction finance.

How can you plan a bridge within the LTV cap?

1. Start from the net cash you truly need, including any works you must fund yourself.
2. Check the gross figure against a cap for your security type, not the residential headline.
3. Add a month or two of contingency to the term and see how much cash that removes.
4. Budget stamp duty, legal, valuation and broker costs outside the facility.
5. Allow for a down-valuation of a few per cent, especially at auction or on unusual property.
6. If the numbers sit right at the cap, consider a bigger deposit, a shorter realistic term or additional security, and ask how each one changes the risk.

Using equity in another property as extra security can raise the borrowing on the main purchase, but it puts both properties at risk if the exit fails. Releasing equity from a property you already own is covered on capital raising bridging loans. Costs beyond the fee and interest are set out in bridging loan costs and fees explained.

When you are ready, contact us with the value, net amount, term, purpose, occupancy and exit. We are an introducer: where the case fits, we pass a complete pack to an FCA-regulated broker. We do not lend, set LTVs or approve applications.

Is this regulated or unregulated bridging?

Occupancy is the legal dividing line. If you or a close family member live in, or will live in, the property as a home (the usual test is at least 40% of it), the loan is likely to be a regulated mortgage contract, with affordability checks, consumer protections and usually a maximum 12-month term. BridgingLoans.online is an introducer, not an FCA-authorised broker and not a lender: where occupancy is yes, we pass a complete pack to an FCA-regulated broker, who explains the protections that apply. Investment, commercial, vacant buy-to-let, land and many company or SPV files are often unregulated. Either way the figures here are indicative only and this is not advice or a product recommendation. See regulated bridging and unregulated bridging.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Indicative estimate only. Not a quote, illustration under MCOB, or offer of credit. BridgingLoans.online is a trading name of PASECOM GROUP LTD (company 17139327, ICO ZC117546), an introducer, not a lender. Email hello@bridgingloans.online.

Last reviewed: 5 October 2026.