Pricing
Loan to Value (LTV)
Loan to value is the loan amount expressed as a percentage of the property's value. It's the single biggest factor in determining your bridging loan rate.
LTV is calculated by dividing the loan amount (plus any existing charges that will remain on the property) by the property's market value, then multiplying by 100. A bridge of £150,000 on a £300,000 unencumbered property is 50% LTV.
Lower LTV means lower lender risk, which translates directly into a cheaper rate. On our panel, sub-60% LTV gets you the headline 0.62% per month rate. Above 70% LTV, rates start to rise meaningfully — and above 75% only specialist lenders will engage.
On regulated bridging the maximum is typically 75% LTV. On unregulated cases, some lenders go to 80% — Aspen, for example, on heavy refurbishment. Anything above 80% in the bridging market is rare and almost always specialist.
Formula
LTV = (new loan + existing charges) ÷ property value × 100
Worked example
A bridge of £200,000 on a £400,000 property with no existing mortgage is 50% LTV. If there's already a £100,000 mortgage staying in place, the same £200,000 bridge becomes 75% LTV (£300k of debt against £400k value).