Below-market-value purchases got a fresh look
Two bridging lenders are taking different routes to funding below-market-value purchases, with Hope Capital Property Finance reportedly widening its limit to up to 75% of open market value and MS Lending Group lending up to 90% of the purchase price, subject to a market-value cap.
Hope Capital said it has stretched its lending criteria for Futurity Finance's borrowers after completing over 14 deals with the broker in the past 12 months, citing a semi-commercial purchase in London and a below-market-value purchase in Scotland.
David Weir, national account manager at Hope Capital, said the two cases show the range of deals the lender can structure for Futurity Finance's borrowers.
Of working with Stephen Gallagher of Futurity Finance, he added, "Working closely with Stephen on over 14 deals in the last 12 months has given us confidence to stretch our criteria to support his borrowers."
How lenders size the loans
MS Lending said traditional bridging is typically based on the purchase price alone. Its below-market-value product lends up to 90% of the purchase price on residential properties, subject to a maximum of 70% loan-to-value (LTV) against market value.
Broker Boxx Finance said most bridging lenders lend 70% to 75% of open market value on below-market-value purchases, occasionally reaching 80% on strong cases with a clean exit.
Hope Capital's reported 75% limit is subject to a full valuation and was described as a UK-wide product update. Weir said the Futurity Finance relationship helped the lender improve its Scottish offering by adjusting its view on below-market-value criteria, on which it had not previously taken a position.
Futurity Finance is a Scotland-based brokerage, and Hope Capital said the relationship has produced more than £13 million in completions over the past 12 months.
A more measured market
Bridging & Development Lenders Association data showed completions of £1.8 billion in the first quarter of 2026, down from £2.5 billion in the previous quarter. Average LTV eased to 56.64% from 58.64%, and the association said the figures should be read against recent rapid growth and a more cautious property finance environment.
The London purchase
The first case involved a semi-commercial property in London, which presented an investment opportunity for the borrower. Weir structured the deal to maximise returns, and it was the first transaction he and Gallagher had structured together.
Hope Capital lent against the property's projected value, enhanced by a title split completed at the point of completion, which increased the funding available. The lender provided 100% of the £3.8 million purchase price, giving the borrower time to secure refinancing without the risk of an impending second charge on another property.
The Scottish purchase
The latest case involved the below-market-value purchase of a commercial asset in Scotland comprising three office buildings. The borrower's experience, together with the working relationship already established with Gallagher, gave Hope Capital the confidence to proceed.
The facility was set at 70% LTV against the property's vacant possession value, producing a gross loan of £2 million over a 12-month term with a refinance exit. The longer term was taken for additional comfort, and the borrower expects to exit the bridge within three months.
For commercial assets, MS Lending's product lends up to 80% of the purchase price, capped at 60% of the 180-day value. Hope Capital set the Scottish facility against vacant possession value.
Registers of Scotland data showed 4,639 commercial sales in Scotland in 2025-26, up 2% on the previous year, with a market value of £3.2 billion.
Steve Barber, managing director of Bridging Finance Solutions, said bridging lenders "underwrite backwards from exit", so a tangible exit must be visible before they lend.
Andrew Bate, dedicated underwriter at Hope Capital, supported the transaction through underwriting and worked with Weir on the credit referral to reach a solution that met the borrower's requirements. Alicia Alty, sales specialist, helped Weir and the broker issue terms and manage the credit referral.
Gallagher said the structuring of these deals gave the borrower an equity gain from day one and taxation savings. He called this "exactly the kind of result that leads to repeat business".
