{"id":3180,"date":"2020-05-27T15:21:14","date_gmt":"2020-05-27T14:21:14","guid":{"rendered":"https:\/\/octagoncapital.co.uk\/?p=3180"},"modified":"2021-09-26T18:45:54","modified_gmt":"2021-09-26T17:45:54","slug":"how-much-deposit-do-you-need-for-a-bridging-loan","status":"publish","type":"post","link":"https:\/\/octagoncapital.co.uk\/guides\/how-much-deposit-do-you-need-for-a-bridging-loan\/","title":{"rendered":"How Much Deposit do I Need for a Bridging Loan?"},"content":{"rendered":"

\"Bridging-loan-deposit\"When you enter a bridging loan, you will usually need to put down a deposit. This is a lump sum paid upfront. The amount you will need to pay as deposit depends on the amount you want to borrow, the value of the property you are looking to purchase and the LTV (which is dictated by your lender).<\/p>\n

Your deposit will be at least 20% to 25%, as the LTV available on a bridging loan is 70% LTV<\/a> or 75% LTV unregulated. The deposit represents the proportion of the property you own outright, the LTV is the rest of the property which you pay off with a bridging loan.<\/p>\n

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What is LTV?<\/strong><\/h2>\n

LTV (otherwise known as the Loan-to-Value)\u00a0is the ratio lenders use that shows how much you may be able to borrow versus the value of the asset you want to borrow against.<\/p>\n

For example, if you wanted to purchase a property worth \u00a3100,000 and wanted to borrow \u00a375,000, the LTV of the loan would be 75%. Your deposit would be the other 25% which would be \u00a325,000.<\/p>\n

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LTV Key Features<\/strong><\/h2>\n