Different lenders will all have policies about what they consider a large loan - there isn't any fixed cap on bridging finance, which can run into many millions.

The key is around the exit strategy - if you have a viable way to pay back the original loan, you can borrow up to any amount required.

Your exit plan needs to cover the loan's full value, plus the interest accrued, and typical options are to remortgage the property once development work is complete, or sell it on and use some of the proceeds to repay the bridge loan.

As we've seen, the risk depends on the exit strategy's stability, so if this is solid, then it isn't any harder to get a substantial size loan.

Lenders will risk assess every application, and if there is a low risk, the process is straightforward.

It might be harder to get a small bridging loan than a larger one! Most lenders have a minimum, starting at as low as £10,000 but more commonly up to around £50,000.

Again, it's all about risk! Generally, bridge loans require a deposit of around 30% or 35% - but if the risk factor is higher, you might need a deposit of up to 50%.

Should there be any risks, such as investing in a non-standard development property, you're likely to need a deposit at the higher end of the spectrum.

The best way to find competitive rates on bridging finance is to consult a whole-of-market broker.

New products and lenders come onto the market all the time, and it's essential to understand the lender's criteria before deciding who to apply to.

If you meet the below criteria, you are in a strong position to negotiate low-interest rates:

• Viable exit strategy. This is a critical part of the assessment, and some lenders will have policies about what exit plans they can accept. You will need evidence of the stability of your exit strategy, such as a remortgage agreement in principle, or a projected valuation of your development.
• Good credit history. If you have bad credit, then a lender will perceive your application as higher risk and offer steeper interest rates.
• Development experience. For complex projects, lenders may require a minimum number of years knowledge to feel confident that you will complete the development successfully.
• Security. Bridge loans are often secured against the property you are developing - but you can use other properties or assets as security. If that security is of a high value, comfortably covers the loan's worth, and would be easy to sell in a repossession scenario, the risk factor is lower.
• Healthy deposit. As with any secured loan, the higher the deposit, the lower the LTV and the lower the risk factor. If you have a deposit of 40% or more, you will get the lowest rates on the market.