Loan-to-value is the single biggest driver of bridging loan pricing. Every 5% reduction in LTV typically saves 10 to 20 basis points on the monthly rate, and moving below 60% or 65% opens a wider range of lenders with more competitive terms. But LTV in bridging is not as simple as dividing the loan by the property value. The gross facility, including the arrangement fee and retained interest, is the figure lenders assess against, and it is higher than the net loan the borrower actually receives. This tool calculates both, shows the difference, and models multi-property security to test whether adding a second property reduces the effective LTV enough to move into a better rate band.
All figures are illustrative and the tool does not constitute financial advice. Rate bands shown are typical ranges, not quotes.
At a Glance
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Lenders assess gross LTV, not net. The difference catches borrowers out.
The arrangement fee and retained interest are added to the net loan to form the gross facility. A borrower who needs £280,000 at completion may have a gross facility of £340,000 or more once fees and interest are included. The gross LTV is what the lender caps, and it can be meaningfully higher than the net LTV the borrower assumed they were at.
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Adding a second property as security can reduce the LTV and unlock a lower rate band.
When two properties are cross-charged, the combined value forms the security base. This can reduce the effective LTV by 10% or more, which may move the deal from a specialist tier into a mainstream one. The multi-property panel shows the LTV with and without the second property, the reduction achieved, and the additional borrowing capacity unlocked.
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The tier staircase shows the maximum borrowing and indicative rate band at each LTV level.
Five tiers from sub-60% to 75-80% show the maximum net loan available at each level, with the indicative rate range for that tier. The borrower’s current position is highlighted, making it visible how much LTV improvement would be needed to reach the next tier down.
Interactive tool
Bridging loan LTV calculator
Calculate net and gross LTV, see the maximum borrowing at each tier, and model multi-property security to reduce the effective LTV and unlock better rates.
All figures are illustrative. Nothing you enter is stored or transmitted.
Security property
Additional security property
Loan details
The cash you need to receive at completion
Gross LTV position
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Net LTV vs gross LTV: why the difference matters
Maximum borrowing at each LTV tier (with indicative rate bands)
Multi-property security benefit
Gross LTV includes the arrangement fee and retained interest added to the net loan to form the gross facility. Lenders assess against gross LTV, not net. Rate bands are illustrative ranges based on typical UK bridging market pricing in 2025/26 and are not quotes. Multi-property security requires both properties to be acceptable to the lender and the first-charge lender (if any) to consent. This tool does not constitute financial advice. All figures are illustrative only.
About this tool
What it calculates
Net LTV, gross LTV, and maximum borrowing at each tier
Enter the property value, any existing mortgage, the net loan required, the arrangement fee, rate, and term. The tool calculates the gross facility (net loan + fee + retained interest), the net and gross LTV, and the maximum borrowing at five LTV thresholds. An optional second property input models the effect of cross-charging on the combined LTV position.
Key features
Gross vs net LTV comparison and multi-property security
The gross vs net panel shows both LTV figures side by side with a plain-language explanation of why they differ and which one the lender uses. The multi-property panel shows the LTV reduction and additional capacity gained from adding a second property. The tier staircase highlights the borrower’s current position and shows the rate band at each level.
Gross vs net LTV: why the difference matters
In bridging, the gross facility is the total amount secured against the property. It includes the net loan (the cash the borrower receives), the arrangement fee (typically added to the loan), and retained interest for the agreed term (deducted at drawdown). A borrower who needs £280,000 at completion, with a 2% arrangement fee and 12 months of retained interest at 0.75% per month, has a gross facility of approximately £340,000. Against a £400,000 property, the net LTV is 70% but the gross LTV is 85%.
Lenders assess the gross figure because it represents the total exposure they have against the property. A lender who caps at 75% LTV is capping the gross facility, not the net loan. Borrowers who plan around the net figure can discover that their deal exceeds the lender’s cap when the full facility is calculated. Confirming the gross LTV early, before instructing legal work and valuation, avoids this. The guide to gross vs net borrowing covers the mechanics in detail, and the maximum LTV guide explains what drives each lender’s threshold.
Multi-property security: how it reduces LTV
Cross-charging a second property means the lender takes security over both properties. The combined property value becomes the denominator in the LTV calculation, which reduces the effective LTV for any given loan size. This is one of the most direct ways to move a deal from a higher LTV tier into a lower one, and is standard practice in the bridging market for borrowers who have equity in another property that is not being used in the transaction.
The second property must be acceptable to the lender as security, and any existing first-charge lender on that property must consent to a second charge being placed. The consent process adds a step to the legal work timeline, which is worth factoring into auction or deadline-driven purchases. The multi-property panel in the tool shows the LTV with and without the second property, making the benefit quantifiable before the borrower commits to offering additional security. The fees guide covers any additional valuation or legal costs associated with cross-charging.
LTV tiers and rate bands
Bridging lenders operate in defined LTV bands. Sub-60% is the prime band with the widest lender choice and most competitive rates. 60% to 70% is mainstream territory. 70% to 75% is the standard cap for most lenders, with pricing reflecting the reduced equity cushion. Above 75% moves into specialist territory where fewer lenders operate and rates are higher. The tier staircase in the tool shows the maximum net borrowing at each band alongside the indicative rate range, so the borrower can see not just whether their deal fits within a cap, but what rate improvement would come from reducing the LTV by one tier.
Rate bands are illustrative ranges based on typical UK bridging market pricing. The actual rate on any specific deal depends on the property type, exit strategy, borrower profile, and lender appetite. The quote comparator can be used to compare two specific quotes once they have been received, and the core cost calculator models the full cost at any given rate.
Related tools
Cost modelling
Bridging loan calculator
Once you know the LTV and approximate rate band, model the full cost in the core calculator to see the net advance, total interest, and total cost of the facility. Use the tool
Quote comparison
Two-quote comparator
Compare two lender quotes side by side, including net advance, total cost, and cost per pound borrowed, to see which delivers the better deal at the LTV position calculated here. Use the tool
Not sure what to look at next?
All of our bridging loan guides and tools in one placeFrequently asked questions
Why is my gross LTV so much higher than my net LTV?
Because the gross facility includes the arrangement fee and retained interest on top of the net loan. On a £300,000 net loan with a 2% arrangement fee, the arrangement fee adds approximately £6,100 (calculated on the gross). With 12 months of retained interest at 0.75% per month, another approximately £27,600 is added. The gross facility is approximately £333,700, which is over 11% higher than the net loan. Against the same property, this raises the LTV by a corresponding amount. The gap between net and gross LTV increases with the arrangement fee percentage, the monthly rate, and the term length.
This is why confirming the gross LTV before assuming the deal fits within a lender’s cap is essential. The tool shows both figures side by side precisely so the borrower can see whether the lender’s threshold applies to the figure they assumed or to the higher gross figure the lender actually uses.
Does adding a second property always reduce the LTV?
It reduces the LTV if the second property has equity (value exceeding any existing mortgage on it). If the second property is fully mortgaged, its equity contribution is zero and the LTV does not change. If it has a partial mortgage, only the net equity contributes to the calculation. For example, a second property worth £300,000 with a £200,000 mortgage adds £100,000 of equity to the combined security, which reduces the gross LTV proportionally.
The lender must also accept the second property as security, which means it needs to be in acceptable condition, have a clear title, and in most cases be within the lender’s geographic and property-type criteria. The first-charge lender on the second property must also consent to a second charge being placed. These are practical steps that add time to the process, not obstacles that prevent it.
What is the maximum LTV I can get on a bridging loan in the UK?
Most mainstream first-charge bridging lenders cap at 70% to 75% gross LTV on standard residential security. Specialist lenders may extend to 80% or occasionally higher, typically at a premium rate. With additional security (cross-charging a second property), the effective LTV against the primary property can exceed 75% while the combined LTV stays within limits, and in some cases 100% of a purchase price can be funded where the combined security supports it.
Second-charge bridging typically caps at 65% to 70% combined LTV. Commercial security caps are usually 60% to 65%. Land without planning permission is lower still. The LTV cap reflects the lender’s assessment of how quickly and reliably they could recover the loan if the borrower defaulted. Lower LTV means more equity cushion and therefore lower risk, which is why it is the primary driver of both approval and pricing.
Can I reduce my LTV to get a better rate?
Yes, and it is one of the most effective ways to improve bridging terms. The three most common routes are: reducing the net loan amount (by contributing more personal equity or restructuring the deal), adding a second property as security (modelled in this tool), and shortening the term (which reduces the retained interest and therefore the gross facility size). Each of these reduces the gross LTV against the same property value, potentially moving the deal into a lower rate band.
Moving from 75% to 65% LTV typically improves the rate by 0.10% to 0.20% per month, which on a £300,000 loan over 9 months saves approximately £2,700 to £5,400 in interest. The tier staircase in the tool shows the rate band at each level, making it possible to see exactly how much LTV improvement would be needed to reach the next tier and what the potential saving is.
Squaring Up
LTV is the primary lever in bridging loan pricing. Understanding both the net and gross figures, knowing which one the lender actually assesses against, and modelling the effect of multi-property security are the three most practical steps a borrower can take before approaching a lender or broker. A deal that looks comfortable at net LTV may be at or above a lender cap at gross LTV, and discovering this after instructing legal work wastes time and money.
The tier staircase and rate band indicators give the borrower the same view a broker uses when matching a deal to a lender: which band does the gross LTV fall in, what rate range does that band attract, and how much LTV improvement would be needed to reach the next tier down. This is the information that turns a bridging enquiry into a structured application that matches the right lender from the start.
Continue your research
Guides, calculators, and comparators covering every aspect of bridging finance Explore guides and toolsThis tool is for illustrative purposes only and does not constitute financial advice. Rate bands shown are typical ranges based on UK bridging market pricing and are not quotes. Gross LTV is calculated assuming retained interest for the full term is added to the loan. Individual lenders may calculate LTV differently. Multi-property security requires lender acceptance and first-charge consent. Your property may be repossessed if you do not keep up repayments on a bridging loan. Actual outcomes will depend on your individual circumstances.
