Industry experts explain why finance option can, with the right broker, be moulded into almost any scenario
The pain of a collapsing housing chain is all too familiar to many, and it is a scenario that is becoming increasingly common. Amid such a sluggish and uncertain market, it is little wonder that mortgage brokers report bridging loans are playing a “bigger role than ever”—though they caution that first-time clients often require education on the finer details and associated risks.
Recent figures from the Bridging & Development Lenders Association indicate that bridging completions reached a record £2.3 billion in the final quarter of last year.
Billie Cox, commercial associate at specialist finance brokers Sirius Finance, said bridging is playing a pivotal role, particularly when it comes to “plugging short-term gaps”.
“Clients are using it to genuinely create value—undertakings that uplift the asset and open up long-term opportunities. With the right broker in place, bridging can be moulded to suit almost any scenario.”
Neil Taverner, a bridging and development finance specialist at Brightstar, observed that vendors are placing additional pressure on potential buyers, as they too desire swift completions. “Bridging finance is regularly used to put clients in an almost cash buyer position,” he added.
The latest data from West One Loans revealed that homebuyers and sellers lost an estimated £275.5 million in the first quarter of 2025 due to failed property transactions. The sudden rise in stamp duty last year is likely to have contributed.
While chain breaks are a typical use for bridging loans, they are by no means the only one. Sirius Finance has utilised the product to help clients take advantage of below-market-value deals and to stretch leverage, while it is also “ideal” for auction purchases and more complex transactions.
“It’s flexible, and the key is ensuring the structure matches the client’s endgame,” added Cox.
Trinity Financial has largely been using bridging loans for development finance and chain breaks.
Aaron Strutt, product and communications director at the firm, said: “With property chains failing more often, especially in slower housing markets, bridging gives sellers a way to complete a purchase even if their sale is delayed, or to avoid losing deposits or dream homes.”
Other popular uses across the sector include rehabilitating non-standard stock coming to market, assisting small to medium-sized developers in entering the market, or facilitating light refurbishment projects.
With such growth, firms are encountering a highly diverse group of clients. Taverner noted this can include home movers, property investors, property developers, and borrowers requiring fast and flexible loans to accommodate school fees and tax bills.
For Cox, it is often SMEs using bridging to purchase freeholds even when their accounts do not “quite show affordability in the traditional sense”.
“It’s particularly useful when the property requires some tweaks or refurbishment to align with the business’s operational needs,” she added. “If they have some cash flow, servicing interest rather than retaining all of it can really boost what they can achieve upfront and reduce what needs refinancing later.”
However, as with any new product, Cox said there is an “educational” element to deals, as many clients are using this type of finance for the first time.
“Rates are always a hot topic, and it’s crucial we spend time at the outset explaining how bridging costs work—especially around retained versus serviced interest, extensions, and exit planning. But if it’s structured properly, the short-term cost is often outweighed by the value created.”
Clients need a clear view of the exit strategy so they know precisely what they are entering into, she added—whether this means a term refinance, a sale, or some other route.
Strutt concurred, adding: “It almost goes without saying that borrowers need to have a solid exit and a way to repay the bridge, otherwise they are going to be in real difficulty. Clients must be aware of the risks before they take out a bridge.”
As for which lenders stand out, there are positives and negatives at many firms.
Graeme Lockwood, associate director of specialist lending at Alexander Hall, said Octopus, Precise, and UTB offer competitive rates but stricter checks, making them slower, while Together and MFS are very flexible but come at a cost. As a good middle ground on rates and flexibility, he recommended MT Finance, Masthaven, and Glenhawk.
Lenders that “take time to understand a borrower’s end goal” are key, according to Cox. “Having access to senior decision-makers is vital, especially when we’re proposing something slightly unconventional or need to smooth out any bumps with valuations or legal work,” she added.
“Good service, for us, means flexibility on valuation methods, sensible title indemnity solutions, and being able to work with valuers we trust to get deals moving at pace.”
