Market challenges and changing views drive bridging finance into the mainstream
Bridging finance is undergoing a reputational transformation in the UK, with brokers and borrowers increasingly viewing it as a practical solution rather than a last resort.
Industry professionals told Mortgage Introducer that the sector has shed much of its former stigma, as greater broker expertise and shifting property market dynamics drive demand for more flexible funding options.
“Bridging is no longer a dirty word, with more and more specialist lenders and brokers in the market,” said Steve Nobbs (pictured top right), unregulated mortgages director at The Loans Engine. “Even brokers that a few years ago ‘wouldn’t touch’ bridging are considering it a viable solution for their customers. I certainly think there is a better understanding of the benefits of bridging both from brokers and consumers.”
Matthew Arena (pictured top left), group managing director at Brilliant Solutions, agreed that the perception among brokers has changed significantly. “It wasn’t that long ago that it was awkward to mention bridging in front of some brokers,” he said. “They would just tell you that it was a product they wanted to stay away from. It was way too expensive, it was almost criminal.
“I think those days are over now. There’s a much better awareness among brokers about what bridging can do and where its place is.”
This shift comes as the property market faces ongoing challenges, including slow conveyancing processes, a shortage of available homes, and increased demand for property conversions and refurbishments.
“We’re still seeing the conveyancing process being incredibly slow and when you have such a slow moving legal process, the chain breaks and problems in that regard—even though there aren’t many transactions, the number of problems are still significant,” Arena explained. “So we’re seeing conveyancing and time delay being a real motivator for using bridging finance.”
The scenarios where bridging finance is proving most valuable remain broad, including chain breaks, auction purchases, property improvements and conversions, and business cash injections. Nobbs said: “We are seeing numerous reasons clients and brokers are coming to us for bridging: chain breaks, auction purchases, improvements and conversions, cash injections to businesses, gifts for families for deposits. As long as the exit stacks up and is viable or plausible, then bridging can be used for a multitude of purposes.”
On the supply side, Arena observed that the availability of funds has kept bridging finance pricing competitive compared to traditional mortgages. “There’s been plenty of money which has kept prices low if you compare bridging pricing to what’s been going on in the UK mortgage market in the last few years, what a difference really!” he said.
According to the latest Bridging Trends report, application volumes rose 11% year-on-year, while quarter-on-quarter growth was 2%, suggesting ongoing demand for bridging finance. Total gross lending remained largely unchanged at £199.7 million in Q2 2025, a 1% decrease from both the previous quarter (£202 million) and Q2 2024 (£201.8 million). The figures indicate stable lending activity despite wider market fluctuations.
Looking ahead, Nobbs expects the momentum in bridging finance to continue. “I expect to see the more ‘mainstream’ lenders entering the market whether through acquisitions of current specialist lenders or in their own right,” he said. “Bridging finance as a solution is one that cannot be ignored.”
Nobbs also emphasised the need for ongoing education and transparency as the sector evolves. “The more understanding consumers have on the benefits (and potential risks) of bridging finance, the more we will see this sector grow and clients reap the benefits,” he said.
Arena, however, cautioned that government policy, particularly around property investment taxation, could impact growth. “The only person that's going to make the bridging momentum stop is going to be (Chancellor Rachel) Reeves herself,” he remarked.
“We need more housing stock, and bridging finance is playing a really key role in that. We will wait and see what happens now with the government’s taxation policy. But I think that’s the only thing that can really stop the growth because the growth is already steady.”
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