100% Bridging Loans: How to Buy Property Without a Deposit

You’ve found a property to buy and the numbers work brilliantly for your investment portfolio, but there’s a timing problem.

Completion needs to be within 4 weeks and your deposit funds are tied up in your current property, which hasn’t sold yet. This is where 100% bridging loans come in, letting you borrow the full purchase price without freeing up deposit funds first.

Yes, 100% bridging finance exists, but it’s not quite as simple as walking into a bank and asking for the full amount.

You’ll need to provide additional security, usually in the form of other properties you already own, or you’ll need to be buying below market value so the property itself provides the security buffer. Not everyone qualifies, the costs are higher than standard bridging, but for the right situation this type of finance makes perfect sense.

This guide explains how 100% funding works, what you’ll need to qualify, and what it really costs when you add up all the fees.

What Is 100% Bridging Finance?

When brokers talk about 100% bridging loans, they mean the loan covers your full purchase price.

If you’re buying a property for £250,000, the bridging loan gives you the full £250,000.

But here’s the thing: they’re not lending you that money secured against thin air. Most standard bridging loans only lend 75% to 85% of a property’s value because lenders want you to have some skin in the game with your own deposit. They see your deposit as proof you’re committed and as a buffer protecting them if property values drop.

That’s why 100% bridging sits in the specialist market, with far fewer lenders offering it compared to standard bridging finance.

The fundamental catch with 100% funding is that you’re not getting 100% of the purchase price with nothing to back it up.

The lender still needs security, it’s just structured differently from standard bridging where your deposit provides part of that security. You’ve got two main routes to achieving 100% funding:

• using additional properties or assets you already own to secure the loan alongside the property you’re buying
• or buying below market value so the property itself provides the security buffer from day one

So while you get 100% of the cash you need, the lender still gets the security they need to cover the debt.

Two Ways to Get 100% Funding

The route you take to 100% funding depends entirely on your situation. If you own other properties with available equity, you can use those alongside your new purchase.

If you’re buying below what the property is genuinely worth, the built-in equity might be enough on its own.

Using Additional Property as Security

Cross-collateralisation or cross-charging, sounds complicated but the concept is straightforward enough.

You’re putting multiple properties into the same security package, and the lender looks at your total borrowing against the total value of everything you’re offering as security.

They’re comfortable lending 100% on the new purchase because your overall borrowing is still relatively low when spread across all your properties. This is fundamentally different from taking out a second charge on one property. Instead, you’re creating one lending package secured against multiple assets.

Let’s work through a real example to show how lenders calculate this.

You want to buy Property C for £250,000 at auction, and you need the full amount. You already own Property A, which is worth £400,000 with a £200,000 mortgage, giving you £200,000 of available equity. You also own Property B, worth £300,000 with no mortgage, giving you £300,000 of clear equity. Here’s how the lender’s calculation works: your total property values add up to £950,000 (that’s £400,000 plus £300,000 plus the £250,000 you’re buying). Your total borrowing would be £450,000 (the existing £200,000 mortgage plus the new £250,000 loan). The aggregate loan-to-value works out at 47%, which is well within normal lending parameters.

The lender approves 100% funding for Property C because your overall borrowing is less than 50% when spread across all the security.

In this scenario the lender actually gains on the security side of things. And depending on the overall LTV achieved, you may be able to negotiate a rate reduction.

Now here’s the bit that matters for making this work in practice.

The bridging lender takes a first charge on the property you’re buying (Property C in our example), which is straightforward because there’s no existing mortgage on it. However, if you’re using properties with existing mortgages as additional security, the bridging lender needs to register a second charge behind your current mortgage lender. In our example, Property A has a £200,000 mortgage, so the bridging lender would need a second charge on Property A. This means you need to ask your existing mortgage lender for permission to add that second charge. Most lenders will agree if the numbers make sense and you’ve got plenty of equity, but some have restrictive clauses in their mortgage terms that mean they’ll refuse. Property B has no mortgage, so the bridging lender can take a first charge on that without needing anyone’s permission.

You’re not limited to just residential properties for this additional security either. Land with or without planning permission can work, commercial property adds to your security package, and you can mix different property types in the same deal.

Lenders usually want to see at least 25% to 30% equity remaining across all the security after accounting for existing mortgages, so the more equity you have available, the stronger your application becomes.

Read more: Cross Charge Bridging Loans Explained

Below Market Value Purchases

If you’re buying below genuine market value, you’ve got equity built into the deal from the moment you exchange contracts.

Take a property you’re buying for £250,000. An independent RICS valuation confirms it’s actually worth £350,000 on the open market. The lender calculates their loan-to-value as 71% based on 350K value and a loan of £250,000, not on what you’re paying.

This means you’ve effectively borrowed 100% of your purchase price, but from the lender’s perspective they’ve got strong security with a comfortable margin for safety.

Common below-market-value scenarios pop up more often than you might think.

Auction properties often sell below market value because the seller needs speed over price, or because the property needs work that puts off buyers relying on standard mortgages. Family members sometimes sell at a discount to help relatives onto the property ladder or into investment. Sitting tenant properties where the tenant has security of tenure often sell below vacant possession value because most buyers can’t get standard mortgages on them. Quick sales where the seller values certainty and speed over achieving the absolute maximum price also create these opportunities.

The lender will always require a professional RICS valuation to confirm the genuine market value, because your opinion of what it’s worth doesn’t count for lending purposes.

Acquiring a genuine BMV property is usually quite difficult. Even if you achieve a great price at auction, the surveyor could argue that this is still just the market value.

You can more confidently defend the situation where an off-market deal has been done because the vendor needs you to complete super fast, as they don’t want to wait the normal 3/4 months.

One thing to watch: if you’re planning to refinance onto a standard buy-to-let mortgage afterwards, most lenders have a six-month seasoning rule where the property needs to have been in your ownership for at least six months before they’ll lend.

Read more: How the 6-Month Mortgage Rule Affects Your Bridging Loan Exit

Who Qualifies for 100% Bridging?

100% bridging works for various types of borrowers and ownership structures, but you’ll need to meet specific requirements and demonstrate clear exit strategies.

Who Can Apply

Individual borrowers can apply in their own name, which is straightforward for most investment properties, though you’ll be personally liable for the loan.

Limited companies and Special Purpose Vehicles (SPVs) are equally common, particularly with developers and portfolio landlords. The commercial bridging loan is made to the company rather than to you personally, though lenders usually still require personal guarantees from directors. Many professional investors prefer SPVs because they keep each project in a separate legal entity.

Partnerships and Limited Liability Partnerships (LLPs) can access 100% bridging if you’re buying with business partners or family members. Offshore companies based in jurisdictions like Jersey, Guernsey, or the British Virgin Islands can borrow too, though you’ll face enhanced due diligence requirements and fewer lenders will accept you.

Trusts can sometimes work depending on the structure and trustee authority, but you’ll need detailed legal documentation.

Related: What Checks Do Bridging Loan Companies Carry Out?

What You Need to Qualify

Our minimum loan is £150,000, for investment and business properties only.

You can’t use this for buying your own home as that falls under different regulated mortgage rules. You’ll need clear equity in your additional security, with most lenders looking for at least 25% to 30% equity remaining after all existing mortgages are accounted for. The most important requirement is having a credible exit strategy showing how you’ll repay the loan, whether through property sale, refinancing onto a standard buy-to-let mortgage, or business income.

Many specialist lenders offering 100% funding only work through brokers, so direct application simply isn’t an option. These lenders have exclusive broker-only relationships, which means your only route to them is through a professional broker who has those existing connections.

Related: Regulated vs Unregulated Bridging Loans: Which One Do You Need?

How Bridging Loan Brokers Help

Working out aggregate loan-to-value calculations across multiple properties, understanding which lenders accept which types of security, and structuring deals for complex situations requires genuine specialist knowledge.

We know which of your existing mortgage lenders are likely to consent to second charges and which will refuse before you even ask, saving you time and potential credit footprint issues from unnecessary applications.

Our network of 250-plus lenders includes specialists who focus exclusively on high loan-to-value and complex cases, including those who’ll arrange equitable charges when standard second charges aren’t possible. These are lenders you simply can’t access directly as a borrower.

We’ve structured hundreds of 100% deals including international clients, offshore ownership structures, and multi-property portfolios, so we know which lenders will say yes to your specific setup.

For auction purchases with 28-day completion deadlines, having established broker relationships means your application goes straight to decision-makers who understand the urgency and can move fast. We also negotiate terms you won’t get as a direct applicant, because lenders offer better rates to brokers bringing them quality business they trust.

Take the Next Step

If you’ve got equity locked in other properties and you’re looking at a time-sensitive opportunity, 100% bridging could work for your situation. The key is getting your application to the right specialist lenders quickly with proper structuring from the start.

Call us on 0330 030 5050 to discuss your specific circumstances and whether 100% funding makes sense for you.