How large bridging differs
The principles are the same as any bridge: short-term finance, secured on property, repaid by a sale or refinance. What changes at higher loan sizes is the number of lenders and the depth of underwriting. Many bridging lenders cap their loans at a few million pounds, and fewer again lend above £10m on a single case.
Each large loan is typically assessed individually by a credit committee, and terms are more open to negotiation. Fees, the loan to value, interest treatment and conditions can all be discussed, and some lenders will consider joining with another lender to share a very large loan.
Loan to value at this level is often more conservative than for smaller loans, particularly on prime residential property where values can move more and the pool of buyers is smaller. Lenders commonly lend up to around 60% to 70% of value, depending on the property and the exit.
Valuation and security
Valuations on high-value and complex property take more work. Lenders instruct valuers with experience of the property type and value range, and may ask for both a market value and a value assuming a sale within a shorter period. For prime homes, the valuer will look closely at comparable sales, which can be few.
Large loans often involve more than one property. Lenders may take security over a portfolio, add additional security from other property you own, or structure releases so that individual properties can be sold and the loan reduced. Cross-collateralised structures need clear release terms, setting how much of each sale goes to the lender.
Legal work is more involved too. Title reviews across several properties, corporate structures, existing lenders and any tenancies all take time, so starting due diligence early helps the case progress.
What lenders look at
For large loans, lenders look beyond the property to the borrower's wider position. Expect them to ask for:
- A statement of assets and liabilities, including other borrowing
- Evidence of the source of funds for your contribution and the source of wealth behind it
- Details of company and trust structures, and the people behind them
- A detailed exit plan, with evidence such as refinance terms, sale agreements or agent advice
- A summary of your experience with property of similar scale
Anti-money laundering checks are thorough at this level, particularly where funds or borrowers are based overseas. Having documents ready shortens the back and forth.
Costs and the exit
On a large loan, small differences in fees and interest treatment make a substantial difference in pounds. Retained interest on a multi-million pound loan can be a large sum, reducing the net advance. Some lenders allow interest to be paid monthly where there is income or other means to support it, which can increase the funds available on day one. Arrangement and exit fees, valuation and legal costs all need to be compared on a like-for-like basis.
The exit needs to be realistic for a large sum. A refinance onto a private bank, investment or development facility, or a sale of a high-value property, can take longer than for a smaller loan. A term with headroom gives room for that.
We compare lenders with appetite at this loan size, then present the case in the detail their credit committees expect. Instant Quotes gives indicative figures as a starting point, and final terms depend on each lender's valuation, underwriting and checks.
If you or your family will live in the property
If the borrower is an individual or the trustees of a trust, and the property is, or will be, lived in by you or a close family member, the loan is a regulated mortgage contract with additional protections. We will tell you at the outset if that applies and how your case will be handled, and Instant Quotes shows only products built for regulated bridging when you tell us so.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
