70% LTV Bridging Loans

A 70% bridging loan is the amount of money that a lender is willing to offer a borrower in relation to a property’s value.

This percentage is known as the Loan-to-Value (LTV) ratio.

For example, if the chosen property is valued at £500,000, a 70% bridging loan would allow you to borrow up to £350,000, and you would typically make up the remaining £150,000 through other savings, income or through investors.

The LTV ratio is an important metric to help lenders assess the level of risk they are taking on with a specific loan. The higher the LTV ratio, the higher the loan and therefore, the higher the risk.

Absolutely. As an independent private bridging lender, we offer bridging loans between £250,000 and £2,000,000 with an LTV of up to 70%.

We understand that when it comes to bridging loans, our clients need capital and fast.

We make quick decisions and aim to complete within 2 weeks.

To work out the Loan-to-Value (LTV) ratio, you divide the loan amount by the total value of the property, and then multiply the result by 100 to get a percentage.

The formula is:

LTV Ratio = (Loan Amount / Property Value) x 100

For example, if you’re borrowing £200,000 on a property valued at £400,000, the calculation would be:

LTV Ratio = (200,000 / 400,000) x 100 = 50%

As a general rule, the lower the LTV ratio, the less risk the lender takes on, which can help you get better loan terms or interest rates.

There are a number of factors that affect the LTV Ratio. These include:

The Deposit: The bigger the deposit, the lower the LTV ratio. This is because the percentage of the property value that is being covered by the loan decreases.

Property Type: The type of property (residential, commercial, or mixed-use) and condition can have a big impact the LTV ratio that is accepted. Well-looked after properties in good areas tend to get higher LTVs due to their desirability.

Borrower’s Financials: The borrower’s credit history, income and financial stability play a major role in the LTV. Borrowers with a good credit history and a solid financial background may receive a higher LTV ratio.

Exit Strategy: We want to know that your exit strategy is fool proof. A clear and realistic exit strategy is not only an important part of securing the loan, but the LTV too.

Market Conditions: The LTV is all about minimising risk. In a strong market, lenders often feel more comfortable offering higher LTVs. Conversely in a volatile market, they may reduce LTVs to lower the risk.

No, Blue Square Capital does not offer bridging loans with LTV ratios above 70%.

Our policy is designed to make sure our loan is protected, even if the project or exit strategy doesn’t go completely to plan.

If you want to lower your LTV ratio, it may be worth doing one of the following:

Increasing your deposit: One of the best ways to lower your LTV ratio is by increasing your deposit. The more cash you put in, the lower the loan amount needed in relation to the property’s value.

Improve the value of the property: Boosting your property’s value through refurbishments can lower your LTV ratio. A higher property value means the loan amount is a smaller percentage of the total value.

Get a smaller loan: If you can, try and go for a lower loan amount. This might be by trying to buy a cheaper property or putting down more money. This will help to lower the amount you need to borrow.

When it comes to assessing loan applications, we look at a number of different things.

We will want to know everything, from the value and details of the property you are buying, to how you plan to repay the loan.

Whilst we do run credit checks, we are more interested in what you plan to do with the loan, and most importantly, how you pay it back.

Before applying you will need:

• An independent property valuation
• A survey
• Company bank statements
• Details of exit strategy

Then, our team will work to give you indicative turns within 24 hours.

If your application is approved, we aim to get the funds with you within 2 weeks.

With a 70% LTV bridging loan, you can buy a range of property types, some of these include:

Residential Properties

• Single-family homes
• Apartments and flats
• Multi-family units
• Townhouses
• Buy-to-let properties
• Houses in Multiple Occupation (HMOs)
• Holiday homes

Commercial Properties

• Office buildings
• Retail units and shops
• Restaurants and cafes
• Hotels and bed-and-breakfasts
• Mixed-use properties (e.g., shop with residential flats above)

Auction Properties

• Properties purchased through auctions (residential or commercial)
• Distressed properties requiring quick purchase
• Short-sale properties with urgent sale deadlines

Investment Properties

• Student accommodation units
• Care homes or retirement facilities
• Leasehold properties with short leases

Properties in Need of Renovation or Repair

• Properties that are not eligible for traditional mortgages
• Buildings that need structural improvements

At Blue Square Capital, we offer monthly rates starting from 0.95%, which stay fixed throughout the 15-month loan term.

Other costs to be aware of include:

• Arrangement fees (2% of the loan amount)
• Bank transfer fee (£25)
• Admin fee (£999)
• Valuation and survey fees (depends on property)
• Solicitor fees (depends on project)
• Exit fees (n/a)

How Much Can I Borrow With Blue Square Capital?

We offer bridging loans between £250,000 – £2,000,000 with an LTV of up to 70%. However, every application is assessed on a case-by-case basis and not all loans are approved.

Do Lenders Offer Bridging Loans At 100% LTV?

Whilst some lenders may approve 100% LTV bridging loans, this is very unusual. This is mainly because the lender is taking on very high risk, especially as the borrower has no equity in the property.

Is Blue Square Capital A Lender Or A Broker?

Blue Square Capital is a bridging loans lender. However, we work very closely with bridging loan brokers all over the UK.

How Quickly Can My Loan Be Approved?

We pride ourselves on working quickly, providing indicative turns within 24 hours. If approved, our legal teams work as fast as they can, so you can have the money in your account within 2 weeks.

Does The LTV Ratio Include Fees and Interest, Or Is It Just Based On The Loan Amount?

No, the LTV ratio is usually only calculated in relation to the loan and property value. However, it’s important to speak to your lender about their terms to understand how they calculate the LTV.

How Long Is A Typical Loan Term Issued By Blue Square Capital?

Our loan terms are set at a maximum of 15 months, which means the entire loan amount needs to be repaid within that time. Unlike other lenders, we do not charge early exit fees, so if you do repay it early, you won’t be penalised!