Generally, most bridging lenders require a deposit or equity of at least 20% to 40%.

A bridging loan can allow you to borrow up to 100% of the purchase price of your new property, plus the associated costs. This is particularly useful if you've purchased a property that is outside of your current borrowing capacity, but will become affordable once you've sold your existing property.

Loan capitalisation payments refer to the practice of adding unpaid interest or fees to the principal balance of a loan. Instead of making immediate payments towards the accrued interest or fees, they are added to the loan balance, resulting in an increased total amount owed. In the context of a bridging loan, capitalising payments is often applied when the borrower is unable to make interest payments during the loan term, typically until the sale of their existing property.

Instead of requiring immediate interest payments, the interest is capitalized and added to the principal balance. This means that the borrower doesn't have to make regular interest payments during the bridging loan period, and the total amount owed (known as the Peak Debt) increases over time. Once the existing property is sold, the proceeds from the sale are used to reduce the Peak Debt.

The remaining debt, after deducting the net proceeds of the sale, becomes the End Debt, which is repaid as a standard mortgage product. It is important to note that capitalizing payments can lead to an increase in the overall cost of the loan, as interest continues to accrue on the higher loan balance. Capitalizing payments can provide short-term financial relief by deferring interest payments until a later date, but it's essential to carefully consider the implications and potential costs associated with capitalizing interest or fees, as it can result in a higher overall debt burden.