High LTV Bridging Loans
High LTV bridging loans structured with senior and junior secured layers can unlock greater funding against a property’s value. Each case is assessed individually based on valuation, equity and exit strategy.
What Are High LTV Bridging Loans?
High LTV bridging loans are structured facilities designed to maximise the total funding available against a property.
This may be achieved by combining:
- Our normal bridging loan
- An additional junior secured tranche
- Borrower receives a blended pricing structure reflecting risk layers
This layered approach can increase overall leverage compared to a single senior facility.
How a Senior & Junior Structure Works
- Senior Layer: Lower rate, first charge security.
- Junior Layer: Higher rate, second ranking or subordinated position.
- Borrower receives a higher LTV: Combined structure increases total capital release.
All structures are subject to valuation (by RICS qualified surveyors) legal due diligence and a clearly defined exit strategy.
When Is High LTV Bridging Used?
- Maximising acquisition funding
- Reducing upfront equity requirement
- Refinancing existing short-term debt
- Unlocking capital tied up in a property
- Supporting development exit strategies
Worked Example – Structured Capital Stack
Scenario: Investment property requiring enhanced leverage to complete acquisition.
- Senior bridge structured at conservative LTV
- Junior secured tranche added to increase total advance
- Blended rate reflecting layered risk
- Exit strategy: refinance onto longer-term facility
Illustrative example only. Terms subject to underwriting and valuation.
Key Considerations
- Property type and marketability
- Remaining equity buffer
- Exit clarity and timing
- Borrower experience
As with all structured bridging finance, disciplined underwriting and risk assessment remain essential.
Frequently Asked Questions
Can high LTV bridging reach 75% of value?
Facilities are assessed case-by-case. Total leverage depends on valuation, structure and exit strength.
Is junior secured finance more expensive?
Junior tranches typically reflect higher risk and may carry higher pricing within a blended structure, but it is only for a smaller part of the loan so the overall cost may not go up as much as one would expect
Who typically uses structured bridging?
Developers, professional landlords and experienced investors commonly utilise layered capital solutions.
Looking to Maximise Your Funding?
If you are seeking to increase leverage through a structured senior and junior facility, we can review whether a high LTV bridging solution may be suitable.