{"id":10242,"date":"2024-09-03T17:16:11","date_gmt":"2024-09-03T16:16:11","guid":{"rendered":"https:\/\/maslowcapital.com\/?p=10242"},"modified":"2025-11-28T17:25:13","modified_gmt":"2025-11-28T17:25:13","slug":"how-much-deposit-do-you-need-for-a-bridging-loan","status":"publish","type":"post","link":"https:\/\/maslowcapital.com\/it\/blog\/2024\/09\/03\/how-much-deposit-do-you-need-for-a-bridging-loan\/","title":{"rendered":"How Much Deposit Do You Need For a Bridging Loan?"},"content":{"rendered":"

The deposit required for a bridging loan typically ranges from 25% to 35% of the property\u2019s value.<\/span>
\n<\/span><\/p>\n

This is based on a maximum loan-to-value<\/a> (LTV) ratio of around 65% to 75%, depending on the nature of the asset, borrower experience, and exit strategy.<\/span><\/p>\n

For example, if a property is valued at \u00a310 million and the lender offers a 70% LTV, the borrower would be expected to contribute \u00a33 million in equity, with the lender providing a \u00a37 million facility secured against the asset.<\/span><\/p>\n

 <\/p>\n

What is The Minimum Deposit Needed For a Bridging Loan?<\/b><\/h2>\n

The minimum deposit for a bridging loan is usually 25%-40% of the property\u2019s value, but this can vary between lenders.<\/span><\/p>\n

It serves two key purposes:<\/span><\/p>\n

    \n
  1. Risk alignment<\/b> \u2014 ensuring the borrower has a meaningful commitment to the project.<\/span><\/li>\n
  2. Security coverage<\/b> \u2014 providing the lender with sufficient margin to recover capital in the event of default.<\/span><\/li>\n<\/ol>\n

    Maslow Capital\u2019s often refers to the deposit as the borrower\u2019s equity.<\/span><\/p>\n

     <\/p>\n

    What is The Typical Deposit Needed For a Bridging Loan?<\/b><\/h2>\n\n\n\n\n\n\n
    Asset Type<\/b><\/td>\nTypical LTV<\/b><\/td>\nDeposit\u00a0<\/b><\/td>\n<\/tr>\n
    Residential Investment \/ Bridging<\/span><\/td>\nUp to 70\u201375%<\/span><\/td>\n25\u201330%<\/span><\/td>\n<\/tr>\n
    Commercial \/ Mixed-Use<\/span><\/td>\n60\u201370%<\/span><\/td>\n30\u201340%<\/span><\/td>\n<\/tr>\n
    Land Pending Planning<\/span><\/td>\nUp to 60%<\/span><\/td>\n40%+<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Maslow Capital assesses each transaction on an individual basis, taking into account borrower experience, the quality of the asset and the strength of the exit strategy.<\/span><\/p>\n

    If the property and the developer show strong foundations and potential, they may be able to enjoy better leverage, paying a smaller deposit and accessing a higher LTV.<\/span><\/p>\n

     <\/p>\n

    What Factors Impact The Deposit For a Bridging Loan?<\/b><\/h2>\n

    Several elements determine the deposit and equity level required for <\/span>bridging finance<\/span><\/a>:<\/span><\/p>\n