Large bridging loans

There is no fixed threshold, but large bridging finance usually means loans well above the size most bridging lenders handle day to day. These loans are secured on high-value homes, commercial buildings, development sites or portfolios. The size of the loan affects which lenders can take part and how the case is assessed and documented.

Some lenders set a maximum loan size, while others fund larger cases by sharing them with other lenders. Large bridging loans are used for the same purposes as smaller ones: buying before selling, auction purchases, refinancing, and releasing capital for business or investment use.

Lenders look at the same core factors as for any bridge, namely the property value, the loan-to-value and the exit, but in more depth. Large loans usually need detailed valuations by senior surveyors, full legal due diligence, evidence of the borrower's wealth and source of funds, and a carefully documented exit plan.

Where a loan is secured on several properties, each is valued and the lender looks at the total security. Lenders also check anti-money laundering requirements closely on large cases. Loans on a home lived in by the borrower are regulated and follow the rules described on the page about regulated bridging loans.

Large bridging loans are typically secured on prime residential property, commercial buildings, development sites with planning, or a portfolio of properties. Some borrowers offer additional security, such as a charge over another property, to reach the loan size they need. The lender's legal team reviews every title used as security for the loan.

Lenders may lend against a lower loan-to-value on very high-value or unusual property, because there are fewer buyers if it has to be sold. Specialist property, such as hotels or care homes, is often assessed by surveyors who specialise in that sector.

Large bridging loans carry the same types of costs as smaller ones: monthly interest, arrangement fees, valuation and legal fees, and sometimes exit fees. Because the amounts are larger, small differences in the monthly rate or fees have a big effect on the total cost, so comparing several quotes in detail is particularly useful.

Pricing depends on the security, loan-to-value, term and exit. The bridging loan rates page explains how bridging pricing is built up. A bridging loan calculator can show the repayment figure for a given loan amount and term.

If a bridging loan is not repaid at the end of the term, the lender may agree an extension, usually for a fee, or charge default interest. If no solution is found, the lender can enforce its security and sell the property to recover the debt. Large loans follow the same process, though the stakes are higher.

Agreeing a realistic term and exit at the start is the main protection against default. Keeping the lender informed if a sale or refinance is delayed usually gives more options than waiting until the loan is overdue.