Here’s something that often catches people out with development bridging loans 👇🏼. When lenders advertise a 70% loan-to-value, you don’t actually get 70% of the purchase price in your bank. Why? Because the lender takes their costs and interest off upfront. That means: ➡️ The net amount you receive is less than the headline figure. ➡️ You’ll usually need to put in a bigger deposit than compared to a standard mortgage. It can feel like a surprise, but there are benefits too: ✅ You don’t have to make monthly payments – those are already covered in advance. ✅ If your project finishes early and you refinance quicker than expected, some of that prepaid interest can be refunded. So, while development bridging often requires more upfront deposit, it also frees up your cashflow during the build and protects you from unexpected payment demands. The key is understanding the difference between the ‘gross’ (advertised) loan and the ‘net’ (what you actually get). That way, you can plan your deposit and project timeline with your eyes wide open.

Posted by Rob Peters at 2026-02-25 07:11:54 UTC