Last updated: November 6th, 2026
Bolton Business Finance is a UK commercial finance broker that arranges below market value bridging loans for property investors and limited companies buying at a discount, lending against the open market value of the property rather than the lower price being paid.
A below market value bridging loan is a short-term loan where the lender bases the advance on the independent valuation, not the purchase price. Where the discount is large enough, a bridge at 75% of open market value can cover 95% to 100% of the purchase price, so the investor needs far less cash to complete.
Written by Marcus Wright, owner and founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed November 2026.
There are a number of scenarios where you may be able to use a below market value bridging loan to secure a higher level of funding against the open market value. Most mortgage lenders, and many bridging lenders, will only lend against the lower of the price and the valuation. We place BMV deals with the specialist lenders on our panel of 135+ that will lend on value.
The short version
- A below market value (BMV) bridging loan is a short-term property loan where the lender sets the advance against the independent open market valuation rather than the agreed purchase price.
- Most specialist lenders work to 75% of open market value on residential property, 70% on semi-commercial and around 65% on commercial.
- Lenders also cap the loan as a percentage of the price paid, commonly 90% to 95% and in some cases 100%, so a discount of roughly 25% or more below value is usually needed to borrow the full price.
- The valuation, not your own estimate, decides the loan. In our July 2026 Kent case the investor’s estimate was £245,000 and the lender’s valuer said £215,000.
- BMV bridges typically run for 12 months and are repaid by refinancing onto a buy to let or commercial mortgage, or by selling.
- Bolton Business Finance arranges BMV bridging across England and Wales for investment and business purposes only.
| Item | Detail |
|---|---|
| Loan basis | Open market value from the lender’s own RICS valuation |
| Loan to value | Residential up to 75%, semi-commercial up to 70%, commercial around 65% |
| Purchase price | Commonly capped at 90% to 95%, up to 100% with some lenders |
| Facility size | From £50,000, larger portfolios case by case |
| Term | Typically 12 months, with 1 to 36 months available |
| Interest | From 0.55% a month across our panel, retained, rolled or serviced |
| Fees | Lender arrangement fee usually 2%, exit fee 0% to 1%, valuation and legal costs |
| Borrower | Limited companies, SPVs, partnerships and individual investors, business purposes only |
| Coverage | England and Wales, with Scotland and Northern Ireland considered case by case |
| Broker fee | £495 on application plus 1% on completion |
Got a BMV deal?
Send us the address, the agreed price, your estimate of the market value and why the property is being sold at a discount. We will come back to you, usually within 24 hours, with how much a lender is likely to advance and what it will cost.
How Below Market Value Bridging Works
Below market value bridging works by separating two numbers that most lenders treat as one: the price you are paying and what the property is worth. A standard lender sets its loan against whichever is lower, so a discount gives you nothing. A BMV lender instructs its own valuer and sets the loan against the open market value, then checks the result against a cap on the price paid.
The lender runs two tests and lends the lower of the two answers:
- Loan to value. Typically 75% of the open market value on residential property, including the arrangement fee and any retained interest.
- Loan to purchase price. A cap on the net loan as a share of what you are paying, commonly 90% to 95% and up to 100% with a smaller group of lenders.
Because of that second test, the size of the discount decides how close you get to the full price. At 75% loan to value, a purchase roughly 25% or more below the valuation is what puts 100% of the price within reach. A smaller discount still helps, it just reduces your deposit rather than removing it.
Worked Example: Standard Bridge Against a BMV Bridge
Take an investor buying a terraced house for £200,000 that values at £280,000, a discount of about 29%. The figures below show the maximum loan under each approach before fees and interest.
| Item | Standard bridge | BMV bridge |
|---|---|---|
| Lends against | Lower of price and value, £200,000 | Open market value, £280,000 |
| 75% loan to value | £150,000 | £210,000 |
| Price cap applied | Not relevant | 100% of price, £200,000 |
| Maximum loan | £150,000 | £200,000 |
| Cash needed for the price | £50,000 | £0, before costs |
You still pay the buying costs, such as stamp duty, legal fees and the valuation, and the lender’s arrangement fee and any retained interest come out of the facility. With a lender capped at 95% of price, the same deal would leave £10,000 of the price to fund yourself. This is why we compare lenders on the net loan you actually receive, not the headline percentage.
Case Study: £152,000 BMV Bridge on a £160,000 Auction Purchase in Kent
In July 2026 we arranged a £152,000 net bridging loan for a limited company investor buying a three bedroom terraced house in Kent at auction for £160,000. The lender’s valuation came back at £215,000, so the purchase was about 26% below market value and the investor borrowed 95% of the price.
The enquiry came in through our website in April 2026 asking for 100% BMV funding. We compared several specialist lenders. The best net advance was £152,000, about £18,000 more than the next best quote of £134,000, which made a real difference to how much cash the investor needed to complete.
| Item | Detail |
|---|---|
| Borrower | Limited company property investor |
| Property | Three bedroom terraced house, Kent, bought at auction |
| Purchase price | £160,000 |
| Investor’s estimate of value | £245,000 |
| Lender’s valuation | £215,000 |
| Net loan | £152,000, 95% of the purchase price |
| Gross loan to value | About 72% including the 2% arrangement fee |
| Rate and term | 0.94% a month, serviced, 12 months |
| Fees | 2% arrangement, 1% exit, dual legal representation |
| Exit | Refinance onto a limited company buy to let mortgage |
When the valuation came in £30,000 below the investor’s own estimate, the terms had to be restructured. Rather than cut the advance, the facility moved onto serviced interest, paid monthly from the market rent of about £1,400, so the investor kept the same £152,000 net loan at the same monthly rate. A single firm of solicitors acted for both lender and borrower, which saved time and cost, and the loan completed on the auction completion deadline.
What the case shows
- The lender’s valuer sets the loan, so build your numbers on a cautious value, not the best comparable on the street.
- Serviced interest can protect the net advance when a retained interest facility would push the loan over the lender’s limit.
- Comparing net advances, not headline rates, was worth about £18,000 of the investor’s own cash on this deal.
- This lender required the borrowers to already own property, which is common for high leverage BMV lending.
“With an auction purchase the completion date is fixed and the client needs as much leverage as possible. The lender came in with the best net loan by some distance, and when the valuation came back they restructured the deal so my client still received the same amount at the same rate.” Andy Walker, Property Finance Broker, Bolton Business Finance.
Reasons for Below Market Value Bridging Finance
Here are some of the most common reasons that may require a bridging loan on a below market purchase. Lenders want to understand why the property is cheap, so the reason matters as much as the figures.
Discount vs Aggregate Value
If you are buying more than one property or a portfolio of properties, then you may be able to secure a discount off the open market value. In this scenario, you may be able to use a bridging loan to cover 75% of the value, which could be higher than the agreed purchase price. The valuer will value each property individually and the lender adds them up.
Title Creation
If titles are being split, creating a higher aggregate value than the purchase price, you could lend against the new total value after the split. This is covered in detail in our guide to title split bridging finance.
Distressed and Motivated Sellers
If a significant discount has been agreed for a fast completion with a distressed seller, then a below market value bridging loan can be done quickly and up to 75% of the value. Probate sales, divorce, relocation, repossessions and landlords leaving the market are the reasons lenders see most often.
Auction Purchases
Auction lots often sell below open market value because buyers must complete within a fixed period, usually 28 days for a traditional auction. A BMV lender that can value and complete inside that window turns the discount into extra borrowing. Speed is the priority here, so see our auction finance page for timescales.
Planning Gain
If planning has been gained prior to completion, then you may be able to lend against the new market value with planning. For example, you exchange contracts on a purchase, gain planning and then complete the purchase at a later date.
Value Uplift From Works
Lend against the full new market value after works have been completed, with no restrictions on purchase price or cost of works. This can also be done where an option agreement is in place and works have been carried out prior to completion. Where the works still need doing, refurbishment bridging is usually the better fit.
BMV Bridging Compared With Other Ways to Borrow More
BMV bridging is one of several routes to a high percentage of the purchase price. Which one fits depends on where the extra value comes from.
| Option | How the loan is set | Best for |
|---|---|---|
| BMV bridging | Up to 75% of open market value, capped at 90% to 100% of price | Genuine discounts of about 25% or more |
| Standard bridging | Up to 75% of the lower of price and value | Purchases at or near full value |
| 100% LTV with extra security | Charge over a second property covers the deposit | Investors with equity elsewhere and little or no discount |
| Title split bridging | Against the value of the units after the split | Freehold blocks and buildings that can be divided |
| Refurbishment bridging | Day one advance plus works, against the end value | Properties that need work before they can be refinanced |
Where the discount is too small for a BMV lender, putting a second property up as security is often the next option. Our guide to 100% LTV bridging loans explains how that works and what it costs.
Below Market Value Commercial Bridging
Below market value commercial bridging applies the same principle to shops, offices, industrial units, mixed use buildings and land. Lenders usually work to around 65% of open market value on commercial property and up to 70% on semi-commercial, such as a shop with a flat above, so a deeper discount is needed to reach the full price.
Commercial valuations lean heavily on the lease, the tenant and the rent, so a vacant or poorly let building may value lower than you expect. We place these deals through our commercial bridging loans panel, with semi-commercial and land cases often going to different lenders from straight commercial investments.
What BMV Lenders Check
BMV lenders check the reason for the discount, the valuation and the borrower more closely than a standard bridging lender, because the loan can exceed the cash price. In our experience, these are the points that decide a case:
- A clear reason for the discount. Auction, probate, repossession, a portfolio sale or a motivated seller. Unexplained discounts raise questions about the value.
- The lender’s own valuation. A RICS valuation instructed by the lender, using recent comparable sales. Agent estimates and asking prices do not count.
- The chain of sales. Back to back purchases, sub-sales and properties bought by the seller very recently get extra scrutiny, and some lenders decline them.
- Borrower background. Many high leverage lenders want the borrower to own their own home or another investment property, and some prefer previous property experience.
- A credible exit. Usually a refinance onto a buy to let or commercial mortgage, or a sale. Lenders test it against the valuation, not the price you paid.
- Affordability if interest is serviced. Evidence of rent or income to cover the monthly payments.
Check your exit before you exchange
Some buy to let lenders will only use the price you paid if you refinance within six months of buying, while others will use the new valuation. If your exit lender works off the price, the BMV uplift is lost at refinance and you may need to put cash in. We line up the exit lender before the bridge completes.
What a Below Market Value Bridging Loan Costs
A below market value bridging loan costs a monthly interest rate plus an arrangement fee, sometimes an exit fee, and the valuation and legal costs. Pricing depends on the loan to value, the property and the borrower, and the ranges below are what we are seeing across our panel in November 2026.
| Cost | Typical range |
|---|---|
| Interest rate | 0.55% to 2% a month across the panel. Our July 2026 Kent case was 0.94% a month at 95% of price |
| Arrangement fee | Usually 2% of the loan, added to the facility |
| Exit fee | 0% to 1%, depending on the lender |
| Valuation | Paid upfront by the borrower, priced on the property value |
| Legal fees | Your solicitor and the lender’s, or one firm on dual representation where the lender allows it |
| Other lender costs | Some lenders add a site visit fee or title insurance |
| Broker fee | £495 on application plus 1% on completion |
Interest can be retained, rolled up or serviced. Retained and rolled interest is added to the loan and eats into the advance, while serviced interest is paid monthly and keeps more of the facility for the purchase. To work out the total cost of a bridge, use our bridging loan cost calculator.
How We Arrange a BMV Bridge
- Send us the deal with the address, agreed price, your estimate of value, the reason for the discount and your exit
- We compare lenders on the net loan you will receive, the rate and the fees, and come back usually within 24 hours
- Terms are issued and you choose a lender, with our £495 application fee payable at this point
- The lender instructs a valuation and its solicitors, and we keep the timetable on track for any auction deadline
- We line up the exit with a buy to let or commercial mortgage lender that will use the new valuation
- The loan completes and our 1% completion fee is due
Apply For a Below Market Value Bridging Loan
Fill in the form below and one of our expert bridging finance brokers will be in touch to arrange an initial quotation.
Tell us about your BMV purchase
The address, the agreed price, your estimate of value, the reason for the discount and your planned exit are enough for us to start. We usually come back within 24 hours with the lenders that fit and the net loan you are likely to receive.
We are based in Bolton, Greater Manchester, and arrange below market value bridging for purchases across England and Wales. See our commercial finance broker in Bolton page for local contact details.
Frequently asked questions
What is a below market value bridging loan?
A below market value bridging loan is a short-term property loan where the lender sets the advance against the independent open market valuation rather than the agreed purchase price. If you are buying at a genuine discount, a loan at 75% of value can cover most or all of the price, so you need much less cash to complete. It is usually repaid within 12 months by refinancing or selling.
Can I borrow 100% of the purchase price on a BMV purchase?
Sometimes. A lender working to 75% of open market value can cover the full price when the property is bought roughly 25% or more below its valuation. Many lenders also cap the loan at 90% or 95% of the price, so 100% is only available from some of them. You still need cash for stamp duty, legal fees and the valuation.
What counts as below market value to a lender?
A lender treats a purchase as below market value when its own RICS valuation comes in clearly above the agreed price and there is a credible reason for the discount, such as an auction, probate, repossession, a portfolio sale or a seller who needs a quick sale. An asking price or an agent’s estimate is not enough. The valuer’s figure is the one that counts.
What happens if the valuation comes in lower than I expected?
The loan is recalculated on the lender’s valuation, so a lower figure usually means a smaller advance or more cash from you. It can sometimes be restructured. In our July 2026 Kent case the valuation came in £30,000 below the investor’s estimate, and moving to serviced interest kept the same £152,000 net loan at the same rate.
Can I refinance a BMV purchase onto a buy to let mortgage straight away?
It depends on the buy to let lender. Some will only use the price you paid if you refinance within six months of buying, which can wipe out the uplift and leave a shortfall. Others will lend on the new valuation straight away, particularly for limited company borrowers. We check the exit lender’s approach before the bridge completes.
Can I use below market value bridging on commercial property?
Yes. Below market value commercial bridging works the same way for shops, offices, industrial units, mixed use buildings and land, but lenders usually work to around 65% of value on commercial property and up to 70% on semi-commercial. A deeper discount is therefore needed to borrow the full price, and the lease and tenant strongly affect the valuation.
Do I need property experience for a BMV bridging loan?
Not always, but it helps. Many lenders offering high leverage on BMV purchases want the borrower to already own their own home or another investment property, and some prefer a track record of previous projects. First time investors can still borrow, usually at a lower percentage of the price or with additional security.
Can I use a BMV bridging loan on a property I will live in?
No. We arrange below market value bridging for investment and business purposes only. If you or a close family member will live in 40 per cent or more of the property, the finance is a regulated contract and falls outside our remit.
Related guides
- Bridging loans, how bridging works and what it costs
- 100% LTV bridging loans, borrowing the full price with extra security
- Auction finance, completing within the auction deadline
- Title split bridging finance, lending on value after the split
- Refurbishment bridging, funding the purchase and the works
- Buy to let mortgages, refinancing out of the bridge
- Bridging loan cost calculator, work out the total cost of a bridge
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders.
Marcus arranges commercial mortgages, bridging, development finance, business loans, asset finance, invoice finance and merchant cash advances. Call 0161 546 9128.
Marcus is also the author of UK Commercial Finance (2026), a commercial finance book for UK business owners and property investors.
The case study is a real Bolton Business Finance deal, with identifying details removed to keep the client anonymous. Rates, valuations and loan amounts were correct at completion in July 2026 and are not an offer. All finance is subject to valuation, legal due diligence and lender underwriting.
Bolton Business Finance Ltd is an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. We do not advise on or arrange residential mortgages, consumer buy to let or consumer credit. Where you or a close family member will live in 40 per cent or more of a property, the finance is a regulated contract and outside our remit. Rates and costs on this page are typical ranges, not quotes, and all finance is subject to status, valuation and lender criteria. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.