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Can I get finance for below market value property?

Yes, you can get property finance for below market value (BMV) purchases.

Often BMV properties need renovating, so a bridging loan is best suited to this. If the property is BMV purely because you have negotiated a very good price (perhaps you are buying from a family member) you could buy with a mortgage.

If you are unsure whether you need a bridging loan or a mortgage, our advisors can quickly work this out and tell you.

Factors that may impact you getting below market value property finance

  • Some types of adverse credit
  • Not having enough money for a deposit

If you have questions, chat to our advisors on live chat, via the phone, or get a call-back we're here to help.

Today's bridging loan rates

Compare today’s finance rates for below market value purchases. Use our bridging loan calculator if your property needs renovations, or our buy to let mortgage calculator (for residential rentals) or commercial mortgage calculator (for business properties) for term loan rates.

Eligibility for below market value property finance

  • First time buyers to experienced landlords
  • You must be over 18 years old
  • Minimum deposit 15% of the property value
  • Upper age limits at application are flexible
  • Low personal incomes are accepted
  • Property, pension and employment income is OK
  • Ready to get started?

    Your personal advisor will call. Direct lines start 01603. Get today's rates, help, or apply. Lender terms provided in as little as two hours!

How to finance below market value property purchases

Buying property at below market value is where the seller is offering a deal or special price to a buyer, which is below the usual market valuation or asking price of a property.

You may be able to use a standard buy to let mortgage or commercial mortgage (depending on the type of property) to buy in this scenario, however, if you can’t, a bridging loan may be suitable.

One of the main reasons to take out finance for this is to take advantage of a good deal. If you have found a property that is significantly below market value, you may need to act quickly to secure it.

However, if you do not have the cash on hand to purchase the property outright and a mortgage is not possible in the timeframe, a bridging loan could provide the financing you need. With less legal work, bridging loans are faster to arrange than a mortgage.

Another reason to use a bridging loan to buy property below market value is to renovate the property before selling it, or letting it out.

Renovating a property can increase its value and allow you to sell it for a profit, or remortgage based on a higher value.

A bridging loan can provide the funds you need to complete the renovations as well as the purchase price, and you can repay the loan when the property is sold or refinanced.

In this case, you can pay off the loan with longer term finance such as a buy to let mortgage (for a residential rental), commercial mortgage (for a business premises) or semi-commercial mortgage (for mixed-use premises).

Overall, a bridging loan can be a useful tool for purchasing a property below market value, if a mortgage is not possible. However, it is important to carefully consider the terms and interest rates before committing to it. You should also have a clear plan for how you will repay the loan, either by selling the property or refinancing.

We work with a wide range of below market value property finance lenders, including:

Why choose Commercial Trust?

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Apply with ease by phone

It couldn't be easier to secure a bridging loan with our expert advisors. Ask all your questions and arrange an application on the phone from your sofa.

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World class customer service

We'll find you a great deal and take all the admin work off your shoulders, so you can relax while we get your loan completed. All the while giving you progress updates.

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Lender decision in 2 hours

By contacting you by phone and email you can get help more quickly than in-person services. It's possible to get you a lender decision in principle in as little as two hours after our call.

We can help you with...

  • Buying below market value property
  • First or second charge bridging loans
  • Bridging loans for buying at auction
  • Bridging loans to flip property or refinance
  • Development finance for ground-up builds
  • Funding refurbishment of uninhabitable property
  • Borrowing up to 75% loan to value
  • Bridging loan terms from 3 to 24 months
  • Invest in personal name or via a Limited Liability Partnership
  • Investing via a limited company, Special Purpose Vehicle
  • Serviced interest (paid monthly)
  • Retained interest (paid at term end)
  • Exit loan to buy to let, commercial mortgage or sale
  • No minimum personal income options
  • Flexible affordability calculations
  • Unlimited portfolio sizes

Costs involved in a bridging loan

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  • Lenders may charge you for the valuation conducted on your property. They often also charge a product fee, sometimes this can be added to the loan.

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  • You will need a conveyancing solicitor who will charge fees. Read our guide to choosing a conveyancing solicitor.

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  • We charge a broker fee for our work. You pay in two parts. A booking fee, once we have found you a bridging loan deal, at application. The majority of our fee is paid at completion of the loan.

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  • Bridging loans either come with monthly payments, this is called a serviced bridging loan, or you pay all interest at the end of the term, this is a retained bridging loan.

How to apply for below market value property finance


Tell our advisors about the property you are investing in, your needs and circumstances. If you have credit concerns, chat to us about them, so we can put you with the right lender.


Your advisor will find the best possible deal from a search of thousands of products. They will get you a lender decision in principle, this requires a soft credit search (occasionally it is a hard credit search).


Your advisor will call to discuss the product they have found for you. You will be presented with one bridging loan, that is the best match for all your needs and offers you the most cost effective option.


On your instruction, your advisor will submit your bridging loan application. Your account manager then does all liaison and administrative work to complete the deal, whilst keeping you updated at every step.

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Frequently asked questions

Buying at below market value is when the seller is offering a deal or special price to a buyer, which is below the usual valuation or asking price of a property. This can be because of a number of reasons but can include sellers needing quick access to funds, properties that are incomplete, repossessions, or properties for sale at auction.

Below market deals may not be around for long. If you need quick access to funds to purchase a property, a bridging loan might be the right solution for you.

Mortgage lenders are usually only prepared to provide finance to landlords for properties based on the purchase price or at least within 10-15% of its market value. As such, where the property is being sold at well below market value, you may not be able to borrow with a mortgage. This is where a bridging loan may be a good alternative.

Typically properties at bigger discounts are cheaper because they need work doing to them. Bridging loan will fund both the purchase price and the cost of works.

Bridging loans enable you to get access to finance faster than a mortgage. They can also be used when a property is incomplete, such as lacking a bathroom or kitchen, which would not meet mortgage criteria or otherwise need work doing to them.

Market value can be very subjective. It is the amount at which a buyer and seller are happy to negotiate at.

There are some factors which you will need to analyse to calculate the market value:

  • The current property market climate, both national and local
  • Similar properties that have recently sold in the area
  • Property price predictions, but remember they are not guaranteed
  • Plans for the local area that may increase or decrease the value

There are online calculators that can help you calculate the market value of a property. Lenders will employ a professional valuer when they’re calculating the market value to use within a loan.

No, lenders will base the amount they are prepared to loan on the open market value or the purchase price, whichever is the lower.

Yes, it is an option - anyone can sell their property below market value. Everyone has the right to sell at any price they deem is appropriate. However, if there is finance secured against the property that needs to be paid off, it wouldn't be advisable to sell at less than this figure, unless separate funds are available to clear the balance.

There are several reasons why people may sell their property below market value. Here are some of the most common ones:

  • Quick sale – some sellers may need to sell their property quickly due to financial difficulties, divorce, or relocation, and may choose to price the property below market value to attract buyers and facilitate a fast sale.
  • Inheritance – when an inherited property is sold, the heirs may want to sell it quickly and may choose to price it below market value to attract buyers and avoid lengthy sales process.
  • Property condition – a property that needs significant repairs or renovations may be priced below market value to compensate for the additional costs that a buyer may need to incur to make it habitable.
  • Buyer competition – when there is high demand for properties in a particular area, a seller may price the property below market value to attract multiple buyers and generate a bidding war, which could potentially drive up the price.

There are several ways to find properties that are priced below market value, including:

  • Working with an estate agent who has experience with distressed property sales, auctions, or has clients who want to sell quickly.
  • Searching online listing websites that specialise in distressed properties or auctions.
  • Monitoring local foreclosure listings or attending foreclosure auctions.
  • Searching for properties that have been on the market for a long time, which may indicate that the price is too high.
  • Networking with other investors or property professionals, who may have knowledge of distressed properties.

To ensure that you are getting a good deal when buying a property below market value, consider the following:

  • Research the local property market to determine the fair market value of similar properties in the area.
  • Have the property inspected by a professional to identify any potential issues or necessary repairs.
  • Review the seller’s disclosure forms to ensure you are aware of all known issues.
  • Have a legal representative review the purchase agreement and any other legal documents.
  • Where heavy works are required, get quotes so you know all costs before committing to buy and make sure the full amount is what you can afford, with a contingency amount for any unforeseen additional costs.
  • Ensure that you have adequate financing in place to cover the purchase price and repairs or renovations needed.

The process of buying a property below market value can vary depending on the specific circumstances of the sale. However, it may involve some or all of the following steps:

  • Finding a property
  • Conducting research on the property and the local property market.
  • Having the property inspected by a professional surveyor.
  • Getting quotes for any renovations from appropriate contractors (e.g. builders, plumbers, electrician, gas engineers).
  • Negotiating with the seller and their agent to agree on a purchase price and the sale terms.
  • Obtaining financing or making cash arrangements to purchase the property.
  • Getting all legal conveyancing work done to complete the sale.
  • Closing the sale and taking possession of the property.

Here are some tips for successfully buying a property below market value:

  • Work with an experienced estate agent who has expertise in buying distressed properties.
  • Conduct thorough research on the property and the local property market.
  • Be prepared to act quickly when a good opportunity arises.
  • Be willing to invest in repairs or renovations to bring the property up to the market value.
  • Obtain pre-approval for financing or have cash available for the purchase.
  • Have a plan for the property, whether it is to resell for a profit, to let out for income, or live in it yourself.