Bridging loans that cover the entire value of a property may not be popular with lenders or borrowers in the current housing market conditions, according to industry sources.

Melanie Bien, a director of Savills private finance said the downturn in the market and continuing uncertainty over the direction of house prices will impact on the viability of the loans, making lenders less inclined to provide them.

She said: “Lenders are going to be more cautious than ever and borrowers should be as well, to make sure they understand what price they are paying and what the property's worth.

“I would have thought now is possibly the worst market in which to have this sort of product.”

Last week Tiuta launched Underbridge, a 100% bridging loan product aimed at properties that have been undervalued by as much as 40% compared to their open market value.

In other related reports, Broker John Charcol announced the launch of an exclusive range of large loan two year tracker mortgages, giving clients the option to trade off the interest rate and the fee.

Both mortgages by the Broker are available for purchase and remortgage and the fee can be added to the loan. There are no early repayment charges (ERCs) and so if borrowers can afford to make overpayments they can pay off all or part of the fee, or even more, whenever it is convenient.