The property investment landscape is always evolving, but 2026 is shaping up as a pivotal year for those seeking to capitalise on Below Market Value (BMV) opportunities. Traditionally, BMV deals have been challenging to finance, with lenders capping their support at standard Loan-to-Value (LTV) levels—often 75%. However, recent shifts in the bridging market are changing the game for investors and property professionals alike.

What is a BMV Property Investment?

A BMV property is purchased for less than its current market value, often due to motivated sellers, repossessions, or properties in need of refurbishment. For investors, these deals offer the potential for instant equity and higher returns. The challenge? Securing the right funding to complete the purchase quickly and efficiently.

The Traditional Lending Challenge

Historically, mainstream lenders have based their lending on the lower of the purchase price or valuation, typically restricting LTV to 75%. This left investors needing to find larger deposits—sometimes upwards of 30-35%—especially when buying at a discount. For many, this made BMV deals less accessible, despite their potential.

How Bridging Finance is Adapting

Bridging lenders are now recognising the unique value and lower risk profile of genuine BMV transactions. Many are enhancing their offerings:

  • Flexible LTV Calculations: Some lenders will now base their LTV on the open market value, not just the purchase price, if the BMV discount is justified and evidenced.
  • Faster Processing: Bridging finance is designed for speed, enabling investors to move quickly on time-sensitive BMV deals.
  • Refurbishment-Friendly: Many bridging products now accommodate light or heavy refurbishments, allowing investors to add value before refinancing.
  • Exit Strategy Focus: Lenders are placing more emphasis on the investor’s exit plan, supporting those who intend to refinance onto a long-term mortgage or sell post-refurbishment.

What Does This Mean for Investors?

The evolution in bridging finance means:

  • Lower deposit requirements for BMV purchases.
  • Greater access to funding for deals that mainstream lenders may not support.
  • The ability to leverage instant equity and scale portfolios faster.

Key Considerations

  • Not all lenders treat BMV deals equally—criteria and appetite vary.
  • Evidence of true market value and a clear exit strategy are essential.
  • Professional advice and experienced brokerage support can help navigate lender requirements and maximise opportunities.

Final Thoughts

With the right strategy and funding partner, BMV property investments are more accessible than ever. As bridging lenders continue to adapt, savvy investors have the tools to unlock value and accelerate their property ambitions in 2026.

Ready to Explore BMV Opportunities?

If you’re considering a BMV property investment and want to understand your funding options, let’s have a conversation. I specialise in helping investors secure the right finance for BMV deals and can guide you through every step—from structuring your purchase to planning your exit strategy.

Contact Jeff Yu at Capital 8 Finance:

Get in touch today to discuss your next project and see how bridging finance can unlock new opportunities for you.

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Call us today on 07746 937 796