You might have heard about 100% bridging loans but aren’t sure how they work or where to find them. We’ll explain everything you need to know about getting a bridging loan without a deposit, including what security you’ll need, who offers these loans, and how to apply for one.
Many buyers have substantial assets or equity but lack immediately available cash, which can mean missing out on time-sensitive deals.
That’s where 100% bridging loans come in – they let you borrow the full purchase price of a property without putting down a cash deposit, using other assets as security instead.
What is a 100% Bridging Loan?
A 100% bridging loan is a facility that lets you borrow the full purchase price of a property without putting down a cash deposit.
So called ‘no money down’ deals.
Instead of requiring your money upfront, these loans use other assets – usually another property you own – as security for the ‘deposit’ component.
In lending terms this is known as a ‘cross-charge‘.
Let’s say you own a house worth £500,000 with no mortgage.
You could use this property as security to buy another property for £400,000 without putting down any of your own cash. The lender provides a loan of £400,000 and holds charges over both properties until you repay the debt.
For each property you might be able to borrow up to 80% of its value. This would include property you own now, plus the target property.
Many people think that you need to own another property outright, but that’s not always true.
You might use a property with plenty of equity, or sometimes other valuable assets. For example, one of our clients recently used a combination of their main residence equity and a commercial property they owned to secure a 100% bridge for a £450,000 auction purchase.
Related:
How 100% Bridging Loans Work in Practice
Security Requirements
For a 100% loan, you’ll need assets worth more than the amount you want to borrow.
Most lenders accept UK residential or commercial property as security. This could be your home, buy-to-let properties, or business premises.
Let’s say you want to buy a £500,000 property:
You could borrow up to 80% using a first charge bridge. This gives you £400,000.
You own another property worth £600,000 but it does have a £300,000 mortgage in place.
The remaining £100,000 can comfortably be secured against this property’s equity, by using a second charge.
You have now borrowed £500,000 to buy a property for £500,000.
On occasion, some lenders can accept other assets beyond property.
These might include:
- High-value items like cars or jewellery
- Investment portfolios
- Business assets
- Development land
Related: Can you take a loan out against your stock portfolio?
Loan Structure
Most short-term bridges run from 3-18 months.
You and your lender will agree on the length based on your exit plan – that’s how you’ll pay back the loan.
The loan interest is charged each month, based on how much you owe. Most borrowers choose to roll-up the interest, paying it all back at the end.
Your method of loan repayment needs careful thought and will be assessed by the lender when you apply.
Most people either:
- Sell the property they’re buying
- Refinance to a standard mortgage
- Sell another property
- Use incoming funds from elsewhere
Related:
Let’s talk bridging loans!
Who Can Get a 100% Bridging Loan?
You might be surprised by who can get one of these loans.
Many of our clients who use 100% bridges are property investors, developers and business owners.
Unlike standard mortgages, which focus more heavily on your income and credit score, these loans are approved based on your assets and exit strategy.
If you’re wondering about eligibility, here’s what matters most:
- You’re over 18
- You own suitable security (usually property)
- You have a clear plan to repay the loan
- You can prove the source of your future repayment funds
Borrowers could be:
- Sole borrowers
- Joint borrowers
- Partnerships
- Trusts
- Limited Company
- SPV (Special Purpose Vehicle)
A low credit score or some bad credit is normally OK. They’ll look at any recent issues case by case.
You’ll need to provide:
- ID and proof of address
- Property details and valuations
- Evidence of your exit strategy
- Recent bank statements
Business applicants should also have their company documents ready. If you’re planning to sell property as your exit, you might need an estate agent’s valuation or proof of marketing.
Remember though – having the right security doesn’t guarantee approval.
Lenders will still check that your plans make sense and that you can manage if things take longer than expected.
Finding the Right 100% Bridging Loan
Types of Lenders
You won’t find 100% bridging loans on the high street. These loans come from specialist lenders who understand property and business finance.
Each lender has their own approach.
Specialist bridging companies focus purely on short-term property loans. They make quick decisions and often work with experienced property investors. Since they concentrate on bridging, they understand unusual situations better than mainstream lenders.
Private banks offer bridging loans as well, mostly for larger amounts. They can look at your whole financial picture and could offer better rates if you’re buying a high-value property. Some private banks want to build a longer relationship with you.
Alternative finance providers include peer-to-peer platforms and private individuals who lend their own money. They often show more flexibility with security options and might consider cases other lenders won’t.
Assessment Criteria
When looking at your application, lenders focus on three main areas:
First, they’ll check your security property.
Its location, condition, and marketability all matter. A well-maintained house in London or the South East might get a better response than a run-down property in a less popular area.
Next comes your exit strategy.
- Selling a property? Lenders want to know it’s realistic in your timeframe.
- Planning to refinance? They’ll want evidence you’d qualify for that new loan.
Depending on the loan purpose, your previous experience could be important.
If you’ve done similar projects before, lenders feel more confident. One client got approved because they’d successfully completed three similar property flips, even though their exit timeline was shorter than usual.
Common reasons applications get turned down include:
- Security property has issues
- Exit strategy seems unrealistic
- Not enough evidence to support your plans
- Security value doesn’t give enough headroom
Advantages
A 100% bridging facility gives you more options than standard bridging finance that requires deposits.
Borrow more
By using multiple properties or assets, you can secure higher loan amounts than with a single property. One property investor we worked with secured a £600,000 loan using a combination of three properties. If they’d used just one property, they would have been limited to about £200,000.
Flexible charges
The security structure offers good flexibility as well.
Lenders can arrange first and second charges across your properties to create the best setup. This means you can borrow against houses that already have a mortgage in place, tapping in to the equity.
For instance, your main home might only need a small second charge while your investment property provides the main first charge security. This flexible approach means the arrangement can be tailored to your specific circumstances.
Lower interest rates
Bringing in extra collateral can actually lower your interest rate, despite borrowing more.
If you were buying a property with a standard bridge you could probably borrow 80% of the purchase price. So you put in 20% and the lender puts in 80%.
By allowing the lender to place a charge against another property, you could borrow the extra 20%, bringing the total to 100%.
However, if this second property has further equity, this reduces the blended loan to value, and brings the lender’s exposure down as well.
Working with a Broker
A good broker makes a real difference when you need to borrow 100% for a property deal. They know which lenders will consider your situation and which can offer better terms.
Most specialist bridging lenders don’t deal directly with the public – they only accept applications through brokers.
This means you’ll need an experienced broker to access many of the best options.
For example, one of our recent clients had approached several lenders directly but couldn’t find anyone to consider their case. We knew a specialist lender who regularly handles similar situations and secured their loan within two weeks.
Brokers also help you present your application in the best light.
They understand what each lender wants to see and how to explain more complex situations. When one property investor came to us wanting to use mixed security – both residential and commercial – we knew exactly which lenders would consider this and what additional information they’d need.
Beyond just finding a willing lender, brokers negotiate on your behalf.
They spot potential issues before they become problems and often speed up the process. We recently helped a client secure better terms because we knew their exit strategy would appeal particularly to certain lenders.
Remember – your broker should explain everything clearly and keep you updated throughout. They’re there to make the process smoother, not more complicated.
Alternatives
A 100% short-term loan isn’t always your best option.
If you have some cash available, a standard bridging loan with a deposit might work better for you. These often come with more favourable terms and a wider choice of lenders.
Other options might include:
- A standard mortgage if you have more time
- Development finance for larger projects
- Short-term business loans for commercial needs
- Secured loans against your existing property
One client nearly went for a 100% bridge until we found they could release equity from their buy-to-let portfolio through refinancing. This proved much more cost-effective for their situation.
Next Steps
Getting 100% bridging finance could help you seize property opportunities without needing a cash deposit. The key is having suitable security and a solid plan for repaying the loan.
If you’re thinking about a 100% bridging loan:
- Check what security you could offer
- Work out your exit strategy
- Gather your basic documents like ID and property details
- Speak with a broker about your options
Every situation is different, so getting expert advice early helps you find the right solution.
FAQ
You’ll need assets worth more than the loan amount, and this is usually property. Most lenders accept residential or commercial property with enough equity. Some consider other assets like investment portfolios or high-value items.
The basic fundamentals are that you have other assets, with enough equity, to ‘top-up’ the lender’s security. Bringing the combined LTV down to 80% or below.
With the right documentation, you could complete within 7-14 days. Complex cases can take longer.
Remember, there’s extra work involved where multiple properties are involved as security.
Yes, it’s possible. Lenders focus more on your security and exit strategy than credit history. Each case is assessed individually.
Read more: Can you get a bridging loan with bad credit?
Not necessarily. Your exit could be selling property, refinancing, or using other incoming funds. You just need to prove it’s realistic.
If your exit is indeed a mortgage, the lender may ask for proof that you are eligible.
Yes, as long as you have suitable security and can arrange the loan quickly enough to meet auction deadlines.
Read more: How to Finance an Auction Property
They’re regulated if secured against your home. Loans for business or investment purposes are usually unregulated.
Read more: Regulated Bridging Loans Explained: Your Questions Answered
A 100% bridging facility uses a minimum of two properties as lender collateral. They do this by placing a legal charge against each property, known as cross-charging.
Read more: Cross Charge Bridging Loans Explained
Yes, but you might need experience in development to qualify. Some lenders prefer to offer development finance for major works.
Not always. The focus is on your security and exit strategy rather than income.
Yes, brokers have access to specialist lenders and can often secure better terms. Many lenders only work through brokers.
