What is Below Market Value Bridging Finance?
Below market value (BMV) bridging loans are short-term finance products that allow investors to borrow based on a property's open market valuation (OMV) rather than the discounted purchase price.
This structure can significantly reduce the deposit requirement when acquiring:
• Off-market or distressed sales
• Properties needing refurbishment
• Repossession or probate stock
• Assets sold due to EPC compliance issues
If the OMV is verified by a RICS valuation and the lender is comfortable with the exit, you may be able to secure up to 100% of the purchase price — and in some cases, fees and costs too.
💬 Broker Insight
In competitive markets like London or Glasgow, these deals allow seasoned investors to recycle capital faster, by refinancing based on the true OMV shortly after completing necessary refurbishments. When structured correctly, this can free up cash for multiple acquisitions within a short timeframe, accelerating portfolio growth without relying on high deposit inputs.
How below market value bridging loans are used in 2025
With inflation pressures and tighter affordability tests pushing out mortgage buyers, cash is king in 2025. A below market value bridging loan lets investors act quickly in:
• Distressed landlord exits
• Pre-repossession sales
• Executor-led probate sales
• Auction fallback purchases
• Properties failing EPC targets
Market trends shaping BMV bridging finance in 2025
📈 Landlord exits: EPC minimums mean landlords must spend to upgrade or sell. You can use below market value bridging finance to acquire these at a discount, refurb quickly, and refinance onto a compliant BTL product.
🪙 Interest rate volatility: Sellers price keenly due to mortgage strain. A below market value bridging loan lets you take advantage of this window before rates drop and competition rises again.
⚖️ Auction listings up 20% YoY: Many lots fail to meet reserve — often available post-auction at a discount. Fast BMV bridging puts you in prime position to capitalise.
🏘️ Repossession stock: Banks and asset managers now accept lower offers for fast sales. Investors who can complete in 10 days win — BMV bridging makes that possible.
Expert insights and strategies for BMV bridging loans
1. Leverage RICS Support: Don’t submit “agent letters” — always back your application with a full RICS valuation and local sold comparables.
2. Use Exit-Backed Structuring: If possible, secure a refinance DIP before applying for the bridge — some lenders will accept this as part of their risk model and increase leverage.
3. Stack Strategies: Pair a below market value bridging loan with:
• Delayed completions
• Assisted sales
• Vendor finance
These combinations can reduce the capital requirement to near-zero.
4. Don't Overinflate Value: Lenders will apply their own valuation. Be realistic with OMV, over-promising leads to broken chains and lost fees.
💬 Geograhic Flexibility
Our clients use BMV bridging finance to acquire discounted property across the UK — including Scotland, Wales, and all major English cities. While the structure is universal, lender appetite and loan terms can vary by location, property type, and borrower profile.
How lenders assess below market value bridging loan applications
Bridging lenders tend to be cautious when it comes to below market value bridging loans. Some key factors they evaluate include:
• Credibility of the discount: Is the price reduction supported by strong comparables or a RICS valuation?
• Relationship to the seller: Below market value deals involving family members or associates may raise questions about artificial undervaluation.
• Exit strategy: Lenders want clear evidence of how the loan will be repaid, whether through resale, refinance, or term buy-to-let.
In cities like London, Manchester, and Glasgow, where price variances and buyer competition are common, lenders pay close attention to local dynamics. A 20% discount may seem attractive, but the lender will want to verify whether it reflects a genuine opportunity or simply a valuation gap.
💬 Broker Perspective
We often find that lender appetite improves significantly when a detailed rationale is provided, especially when supported by local comparables, refurbishment costings, or pre-agreed exit terms. Many lenders are more comfortable if the buyer can demonstrate how and when they plan to add value or stabilise income.
Why property investors choose BMV bridging loans
With the UK property market in flux, driven by inflation, interest rate changes, and fluctuating buyer demand. motivated sales and off-market discounts are becoming more frequent. In regions like the Midlands, the North East, and Central Scotland, investors are finding real value in below-market acquisitions that wouldn’t have existed 18–24 months ago.
Below market value bridging finance gives experienced buyers a mechanism to act quickly, and unlock opportunities that are otherwise inaccessible through traditional finance. The advantages include:
• Low capital input: Some lenders may offer up to 100% of the purchase price if the discount is strong enough.
• Speed: Bridging loans are designed for rapid completions, often within days.
• Flexibility: Useful when acquiring properties with defects, short leases, or unusual circumstances.
Common use cases include:
• Buying tenanted properties with rental upside
• Acquiring unmortgageable stock for refurbishment
• Securing discounted probate or inherited property
• Snapping up undervalued deals in competitive markets like Leeds, Birmingham, or Edinburgh.
💬 Industry Insight
In the current climate, sellers, especially landlords exiting due to EPC requirements or rising costs, are more willing to accept discounted offers to achieve fast completion. A below market value bridging loan is often the only way to capitalise on these fleeting opportunities before they’re snapped up by cash buyers.
FAQs – Below Market Value Bridging Loans
💬 Do I always need a valuation for a BMV bridging loan?
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Yes — A full RICS (Royal Institution of Chartered Surveyors) valuation is typically required for all BMV applications. Lenders base their decision on the Open Market Value (OMV) rather than the purchase price, so an independent, professional valuation is essential. Desktop or drive-by valuations are generally not suitable for BMV cases unless the deal is very low risk.
💬 Can I borrow 100% of the purchase price?
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In some cases, yes — if the OMV supports it and the exit plan is viable.
When the OMV is significantly higher than the purchase price, lenders may offer 100% of the purchase price, using the equity in the deal as security. This is more likely if your exit strategy is realistic, your loan-to-value (LTV) remains within lender limits, and the project fits their appetite. In higher-risk cases, extra security or borrower experience may be required.
💬 What rates can I expect?
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The rates for a below market value bridging loan in 2025 range from 0.89% to 1.25% monthly.
Rates depend on factors like LTV, property type, deal complexity, and borrower profile. Strong, low-risk deals with a clear margin between the OMV and purchase price may achieve rates below 1% monthly. More complex deals or higher leverage cases tend to fall toward the 1.25% end of the range.
💬 Is this suitable for first-time investors?
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Yes — with a strong plan and the right support, lenders will still consider it.
First-time investors can use below market value bridging finance if they present a clear, well-researched strategy with a viable exit route. Lenders may place more weight on the strength of the deal than experience alone. Working with a specialist broker can help first-time applicants find the right lender match and navigate the process effectively.
💬 Can I use BMV bridging for commercial property?
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Yes, provided the valuation, exit, and lender appetite align.
A BMV loan can be used for commercial or mixed-use properties, but these deals tend to undergo more scrutiny. Lenders will assess the OMV, local demand, asset quality, and the proposed exit strategy. Fewer lenders offer a below market value bridging loan for commercial assets, so a tailored approach is often needed.
💬 What is a RICS valuation and why is it important?
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A RICS valuation is a formal property assessment carried out by a surveyor registered with the Royal Institution of Chartered Surveyors. For BMV bridging loans, lenders rely on the RICS valuation to establish the property's true Open Market Value (OMV), rather than the discounted purchase price. This ensures loan decisions are based on impartial, professional evidence of value.
💬 What’s the difference between OMV and purchase price?
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The Open Market Value (OMV) is the estimated amount a property would sell for in a competitive market. The purchase price is what you’re actually paying for the property, which may be lower if it's acquired below market value. In BMV finance, lenders assess risk based on the OMV, not the agreed price, which can unlock higher leverage.
💬 How long does it take to arrange a BMV bridging loan?
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Most BMV bridging loans can complete in 5–14 working days, depending on the complexity of the deal and how quickly valuation, legals, and underwriting are completed. Working with an experienced broker and responsive solicitor can significantly speed up the process.
💬 What are the exit options for BMV bridging finance?
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Common exit strategies include refinancing onto a buy-to-let or development mortgage, selling the property post-refurbishment, or flipping it for a profit. The strength of the exit plan is a key factor in lender approval, especially when seeking 100% of the purchase price.
💬 How do lenders assess a BMV deal?
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Lenders consider several factors including the authenticity of the discount, strength of the RICS valuation, borrower experience, and the viability of the exit. Deals backed by real market comparables and clear strategy are more likely to be accepted — especially if no relationship bias is suspected between buyer and seller.
OMV VERSUS PURCHASE PRICE EXAMPLES
Open Market Value Example
- VALUE: £200,000
- PURCHASE PRICE: £160,000
- 75% LOAN: £150,000
- CASH DEPOSIT: £10,000
- LTV AGAINST VALUE: 75%
Purchase Price Example
- VALUE: £200,000
- PURCHASE PRICE: £160,000
- 75% LOAN: £120,000
- CASH DEPOSIT: £40,000
- LTV AGAINST VALUE: 60%
One client secured a BMV property in Newcastle at £140,000 with an OMV of £190,000, backed by a RICS valuation.
We structured a bridging loan at 75% of OMV, effectively covering the full purchase price plus legal and broker costs. The property was refurbished and revalued at £220,000 post-works.
The investor refinanced onto a buy-to-let mortgage and pulled out all invested capital within six months, achieving a no-money-left-in deal with long-term income in place.
Risks and deal considerations with BMV bridging finance
While the benefits are compelling, a below market value bridging loan also comes with risks:
• Over-reliance on valuation: If the lender reduces the OMV after due diligence, funding shortfalls can arise.
• Higher interest rates: These loans are priced for risk and speed, expect higher monthly costs than conventional finance.
• Exit risk: Failing to repay the loan on time could lead to asset repossession.
It’s essential to stress test your deal across multiple exit strategies, and be wary of inflated valuations that may look favourable on paper but fail to stand up to lender scrutiny.
BMV bridging finance myths and misconceptions
Myth #1: "I can always borrow 100% with BMV":
✅ Only if the discount is genuine, supported by RICS, and the exit plan is airtight. 100% funding is possible, but not guaranteed. Lenders need to see real equity in the deal, proven by a full RICS valuation — not just a discounted price. A solid exit strategy, like a refinance or resale backed by market comparables, is also essential. If the numbers don’t stack up or the discount looks artificial, full funding won’t be offered.
Myth #2: “All bridging lenders support BMV.”:
❌ Many avoid it altogether — especially if they suspect artificial discounting or relationship bias. Below market value bridging finance is not an "Off-the-shelf" financial product. Some lenders are cautious due to the risk of inflated valuations, fake discounts, or deals between related parties. Others specialise in it and know how to spot a genuine off-market opportunity. Working with a broker helps you filter lenders who actively support below market value deals — and avoid wasting time on the wrong ones.
Myth #3: “It's only for flippers.”:
✅ Landlords use BMV bridging to refinance, hold, and recycle capital. While property flippers often use a below market value bridging loan to buy, refurbish, and sell for profit, it’s also a smart strategy for long-term investors. Many landlords use it to acquire below value properties, refinance once uplifted, and pull out capital to fund their next project. It’s a useful tool for portfolio growth, not just quick turnarounds.
How Evolve Finance Can Help
Below market value bridging loans are a specialism. Not all lenders or brokers support it, and fewer still understand how to structure it effectively.
At Evolve Finance, we work with a wide panel of development and bridging lenders across the UK, and we know which lenders will consider gross development value, open market value, or hybrid structures to support lower deposit deals.
Whether you’re acquiring a discounted flat in Bristol, a repossession in Sheffield, or a below-market value portfolio in Dundee, we’ll help:
• Package the deal with evidence of the genuine discount
• Present your case for lending against OMV where applicable
• Match you with lenders who fund creative, value-based transactions
Get in Touch
To explore how a Below Market Value bridging loan could work for your next deal, speak to our team today. We’ll assess your project, review the valuation evidence, and connect you with lenders who understand how to fund BMV opportunities without delay.
HOW TO GET A BELOW MARKET VALUE BRIDGING LOAN
Step 1: Search for properties that cost less than their market value. You can often find these online, from motivated sellers, or in distressed listings.
Step 2: Evaluate Investment Potential. Calculate renovation costs, expected post-renovation market value, and local demand to assess viability.
Step 3: Approach an experienced broker that works with a broad range of specialist lenders and will prepare a detailed investment plan with exit strategies to secure favourable loan terms.
Step 4: Execute the Plan. Use the loan to buy and refurbish the property. Make sure to follow the project timelines and budgets.
Step 5: Repaying the bridging loan. Repayment may come from the property sale proceeds, longer term commercial mortgage finance or buy to let mortgage, or other sources. A strong exit plan is crucial to avoid penalties.
Speak to a BMV Finance Expert
With the right property and strategy, these type of bridging loans can unlock significant potential and yield substantial returns. As with any financial decision, it's essential to consult with financial experts that are knowledgeable of the current lending criteria to navigate the complexities of the financing whilst ensuring a positive loan application and professional service.
