The UK bridging finance market is set for one of its strongest years on record, with forecasts indicating the sector will reach £12.2 billion in outstanding loans by the end of 2026. This rise follows exceptional growth across 2024 and 2025, marking a major shift in borrowing behaviour, lending capacity, and confidence across the wider property market. As transactions become more time‑sensitive, bridging trends show borrowers increasingly turning to short‑term funding as a strategic tool rather than a backup option.
As many borrowers seek faster, more flexible funding solutions, bridging finance has firmly moved into the mainstream. These market trends reflect growing demand, heightened lender competition, and evolving needs among brokers and borrowers. Below, we break down what’s driving the surge, how the sector is changing, and why Lending Bridge is emerging as one of the strongest players in the current market.
A Market at Record Levels in 2025
Recent industry data shows the bridging sector continuing to strengthen:
- Q1 2025 bridging loan completions hit £2.8 billion, matching Q4 2024 — an unusually strong result for a typically slower quarter.
- New applications rose 55.3%, reaching £18.34 billion, reflecting exceptional demand and rising confidence among borrowers.
- The average loan size remained £540,000, showing sustained appetite from developers and investors.
- Total loan books across BDLA members neared £13 billion, supported by expanding lender activity and increased gross lending.
Collectively, these figures highlight strong sector performance, with many leading specialist lenders such as Lending Bridge, expanding their offerings to meet rising demand.
Why the Bridging Loans Market Is Growing
1. Speed of Funding
Bridging lenders complete deals far more quickly than mainstream banks, with the industry averaging 38–43 days for completion. However, Lending Bridge significantly outperforms this benchmark, regularly completing transactions in as little as 5 days. This accelerated turnaround gives clients a major advantage in auctions, refurbishments, fast transactions, and highly competitive house purchases, where timing can determine whether a deal succeeds or falls through.
2. Flexible Lending Criteria
Unlike traditional lenders, bridging providers focus on the property’s value and a clear exit strategy rather than strict affordability rules. This makes bridge loan financing accessible for borrowers with complex situations, non‑standard income, or urgent deadlines. Including clients needing second‑charge or bespoke specialist finance solutions.
At Lending Bridge, we take an even more flexible approach. Adverse credit does not automatically prevent approval. Each application is assessed on its own merits, prioritising the asset and the strength of the proposed exit. While credit issues may influence terms, borrowers with imperfect histories can still secure the funding they need when speed matters.
3. Expanding Use Cases
Bridging finance is now widely used for:
- Auction purchases
- Renovation projects
- Chain breaks
- Business cash flow
- Tax obligations
- Debt restructuring
- Developer acquisitions
- Rapid property repairs
- Open bridging loans with flexible exits
- Short‑term investment opportunities
This growth reflects broader trends showing borrowers using bridging as an essential tool rather than a last resort.
4. Higher LTV Options
Some lenders now offer up to 75% LTV, enabling borrowers to access larger funding amounts for more ambitious projects.
5. Customisable Short-Term Finance
Bespoke repayment structures, rolled‑up interest, flexible exit terms, and tailored fees allow borrowers to adapt funding to their unique circumstances.
6. Expanding Borrower Demographics
Bridging loans are now used by homeowners, developers, landlords, SMEs, and investors working through commercial mortgage transitions. Illustrating the product’s widespread adoption across the UK.
7. Strong Exit Strategy Requirements
Clear exit planning, whether through refinancing or sale, keeps the market stable and supports lender confidence.
Why the Market Is Growing in 2026
1. Restrictive Traditional Lending
High‑street banks have tightened criteria and slowed approval times, pushing borrowers toward faster and more adaptable alternatives.
2. Interest Rate Volatility
Ongoing rate fluctuations have made short‑term borrowing a practical way to secure opportunities now and refinance later.
Why Lending Bridge Is One of the Best Options for Bridging Loans in 2026
In a rapidly expanding market, Lending Bridge stands out as one of the strongest and most borrower‑focused providers.
Fast, Reliable Turnaround
In a climate where timing defines success, Lending Bridge’s streamlined processes help clients secure funding quickly, ensuring property deals stay on track.
Flexible, Case‑By‑Case Lending
Lending Bridge avoids rigid limitations, offering solutions tailored to real‑world challenges, from unmortgageable properties to heavy refurbishment projects.
Clear, Transparent Communication
Borrowers and brokers value Lending Bridge for consistent, upfront communication that avoids unnecessary delays and confusion.
Tailored Lending Structures
Lending Bridge adapts loan terms to suit each client’s needs, ensuring every structure is practical, realistic, and aligned with the borrower’s exit strategy.
Positioned for Significant Growth in 2026
With activity rising and market dynamics shifting, Lending Bridge is expanding its resources, strengthening partnerships, and enhancing its ability to deliver fast, flexible solutions. This positions the business to support even more clients and introducers as demand accelerates.
What This Means for the UK Property and Lending Landscape
The UK bridging market is projected to reach £12.2 billion in 2026, driven by rising demand, tightening traditional lending, and the growing need for speed and flexibility in the property market. As the sector evolves, borrowers need lenders who combine efficiency, clarity, and adaptability.
Lending Bridge meets those expectations and exceeds them.
With its flexible lending approach, rapid decision‑making, and commitment to exceptional service, Lending Bridge is well‑positioned to grow even further in 2026 and remain a leading choice for short‑term property finance across the UK.
By Guillermo Carrion-Chaux
References
BDLA / Bridging Loan Directory – Bridging market maintains momentum in 2025. (business lancashire)
The Independent – Bridging loans forecast to hit £12 billion in 2025. (Londonlovesbusiness)
Clifton Finance – Bridging Loan Statistics 2025. (clifton finance)
Mortgage Introducer – BDLA reports strong start for 2025. (mpamag)
