Fast access to finance can help investors secure high-value property opportunities, but large transactions often require a lender with experience in complex bridging loans.
This guide explains how specialist high-value bridging finance works, what lenders assess when considering a large loan, and how the borrowing can be structured around your plans for the property.
What is classed as a large bridging loan?
Large bridging loans generally start at around £1 million and can reach £50 million or more, depending on the lender and the transaction. They are often arranged around the needs of property developers, high-net-worth individuals and companies financing substantial property projects.
Because of the amounts involved, lenders assess each application individually. Terms can be tailored to the project, and some lenders may accept more than one property as security, known as cross-collateralisation.
Large bridging loans may be used for:
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Purchasing luxury residential property
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Financing commercial sites, such as industrial parks, retail centres or mixed-use developments
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Funding major refurbishments or property conversions, including commercial-to-residential projects
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Refinancing existing debt or covering a gap caused by development delays
Key criteria for larger loans
Lenders assess many of the same factors for bridging loans of any size. For a high-value loan, they are likely to pay particular attention to:
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The property offered as security: Its condition, value and suitability will help determine the loan-to-value (LTV) available.
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Your exit strategy: The lender will want a credible plan for repaying the loan at the end of its term.
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Your track record: Experience and successful completion of similar projects can support your application.
How to get a large bridging loan
High-value bridging loans are often arranged on a case-by-case basis. These four steps can help you prepare an application:
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Speak to a specialist bridging broker: A broker such as Money Helpdesk can discuss your plans and approach lenders that consider large, complex loans. Contact us below to speak with our team.
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Identify the assets available as security: Gather details and recent valuations for the properties you propose to use as security. The lender may require its own valuations.
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Set out a clear exit strategy: Explain how you intend to repay the loan and show that the plan is achievable within the proposed term.
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Show relevant experience: Provide examples of similar projects you have completed, along with evidence that you can deliver the proposed work.
What rates and costs can you expect?
Rates for high-value bridging loans depend on the property, loan-to-value (LTV), security and exit strategy. A larger loan does not automatically qualify for a lower rate. For example, Shawbrook currently advertises bridging rates from 0.74% per month; the rate offered for a particular transaction may be higher.
Other costs to consider
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Arrangement fee: This is usually charged as a percentage of the loan. MT Finance, for example, describes its arrangement fee as usually around 2%.
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Valuation fee: The cost will depend on the property and the type of valuation required.
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Legal fees: Budget for your own legal work and any lender legal costs you are required to pay. Ask for a breakdown, as complex security arrangements can affect the total.
Compare the full cost of the loan over the time you expect to borrow, including interest and all fees, before choosing a lender.
Best lenders for large bridging finance
Large bridging loans are available from a range of specialist property finance providers, including Together, Shawbrook Bank, United Trust Bank, West One Loans, Octopus Real Estate and LendInvest.
The right lender will depend on the loan amount, property, security and repayment plan. A specialist broker can help identify suitable options and present your application to lenders. We can discuss your transaction and approach lenders whose criteria fit your plans.
High net worth exemption
Does high-net-worth status affect a large bridging loan?
If you meet the FCA’s definition of a high-net-worth mortgage customer, a lender may be able to apply tailored rules when assessing a regulated mortgage. This can allow the lender to consider your wider financial position, including your assets, when assessing affordability. It does not automatically make the loan unregulated or remove the lender’s duty to assess whether you can repay it.
The rules that apply depend on the purpose and structure of the loan. High-net-worth status does not guarantee faster approval, a higher loan-to-value limit or particular interest arrangements. A lender will still consider the property offered as security and your exit strategy.
The reference to MCOB 11.9 in the original text should be removed: that section concerns certain remortgages, rather than a general high-net-worth exemption.
Important: keep in mind that opting for high net worth exemption means waiving certain FCA regulatory protections, such as access to the Financial Ombudsman Service (FOS) for conduct-related complaints. It’s strongly advisable to seek independent legal advice before exercising this option.
Frequently Asked Questions
Common ways to repay a large bridging loan include refinancing onto a long-term commercial or buy-to-let mortgage, arranging development finance, or selling the property when the project is complete.