100% of the price is not 100% LTV
It's an important distinction: funding 100% of the purchase price doesn't mean the lender is advancing 100% of the property's value. Lenders set their own maximum LTV against any individual property, and that maximum doesn't change just because you want to avoid a cash deposit. The way around this is to secure the loan against more than one property, so the combined value supports the loan while the LTV against each individual property stays within normal limits.
Additional security and combined LTV, with an illustrative table
If you offer a second property as additional security, the lender looks at the combined loan against the combined value of both properties, alongside the usual exit strategy and other criteria.
Illustrative example — not a quote or available deal
| Item | Illustrative figure |
|---|---|
| Purchase price funded | £200,000 |
| Value of additional security property | £150,000 |
| Combined security value | £350,000 |
| Approximate combined LTV | ~57% |
Existing charges on the extra property
If the additional security property already has a mortgage or other charge against it, that reduces how much equity is genuinely available, and the existing lender's consent may be required before a new charge can be added. This can add time and complexity, so it's worth checking your existing lender's position early.
Fees and interest reduce the net advance
Arrangement fees, valuation costs, legal fees and any retained interest are usually deducted from the loan, so even where the purchase price itself is funded in full, you should budget separately for these costs rather than assuming they're covered automatically.
Legal charges over every property
Using additional security means a legal charge is placed over that property too, not just the one being purchased. That property then also carries risk if the loan isn't repaid, so this isn't a decision to take lightly, even if it isn't the property you're buying.
When your home is additional security
Using your home as additional security puts it at risk if the loan is not repaid. It can also affect the regulatory treatment of the borrowing, which must be assessed for the proposed arrangement.
Repossession risk
Risk across all secured properties
Exit strategy
As with any bridging loan, you'll need a credible plan to repay the loan — typically a sale or refinance. Because two properties are tied up as security, it's worth thinking through how and when each charge would be released as part of your exit.
If you don't have extra security
If you don't have a second property to offer as security, other routes may be more appropriate — a smaller loan against the purchase property alone with a cash contribution, a second charge bridging loan against a property you already own, or one of the options covered on our alternatives to bridging page.
How our advice is paid for
Initial advice is free. If you go ahead, any fee will be explained and agreed with you in writing before chargeable work begins. A lender or finance provider may also pay commission.
We will assess your requirements and explain the finance routes that may be available. Where specialist support or an introduction is required, we will explain who will handle the case and any associated costs or commission.
Bridging enquiries are assessed internally by our team to understand your requirements and the appropriate route. Where referral to a partner adviser is needed, we will explain who they are, what information will be shared and any referral payment, and obtain your permission before sharing your details.