Bridging in Q2 2026: lending slowed, but borrowers adapted

By the Bridge & Build Finance team · 17 October 2026

The headline numbers

Two regular surveys track the UK bridging market, and both pointed the same way for April to June 2026.

The BDLA, whose figures come from its participating lender members, reported on 22 September 2026, as covered by The Intermediary:

• Completions of £1.6bn, down 15.2% on the previous quarter
• Applications of £7.3bn, down 26.3%
• Total loan books of £10.3bn at the end of June, down 10.6%
• Development lending of £273.5m, little changed from £276.5m in the first quarter
• Second charge completions of £101.1m, down from £131.3m
• Average loan to value of 57.66%, up from 56.64%

Bridging Trends, which reports lending figures from a group of contributing firms, published its figures on 25 August 2026. As reported by Mortgage Solutions, gross contributor lending fell 15%, from £199.2m to £173.1m.

Why lending slowed

The BDLA's chief executive, Adam Tyler, said the slowdown in lending activity had continued into the second quarter, and that "a slower-moving housing market is putting downward pressure on new business pipelines". He was also quoted by Mortgage Solutions saying that feedback from across the property sector was that "transaction levels are subdued and deals are often protracted".

That matters for anyone whose exit depends on a sale. If buyers take longer to commit, a bridge with a 12 month term has less room for delay. Lenders know this, which is why the BDLA's chief executive said the priority is "to support viable transactions with credible exit strategies that reflect the market as it is". Our guide to bridging exit strategies covers what that looks like on paper, and can you extend a bridging loan covers what happens if a sale runs late.

How borrowers used bridging

The more useful story is in what the loans were for. In the Bridging Trends figures for the second quarter:

• Preventing a chain break and buying an investment property were the joint most popular uses, at 18% each. Chain breaks rose from 14%.
• Auction purchases rose from 11% to 14%.
• Heavy refurbishment rose from 6% to 10%.
• Business injections, where property is used to raise money for a business, more than doubled from 4% to 9%.
• Second charge loans rose from 9% to 22%, the highest share since the first quarter of 2021.

Raphael Benggio, bridging director at MT Finance, put it simply: "Instead of postponing transactions indefinitely, borrowers have just adapted." When sales are slow, a chain break bridge lets a buyer complete without waiting for their own sale, and a second charge bridge can release equity without disturbing an existing mortgage.

The two surveys do not measure the same thing. The BDLA reported lower second charge completions by value, while Bridging Trends showed a higher share of deals. Different contributors and methods explain a lot of that, so treat each as one view of the market rather than the full picture.

Regulated bridging is growing

Regulated bridging rose from 41% to 48% of Bridging Trends lending, the biggest quarterly increase since the first quarter of 2022. Regulated bridging is lending secured on a home that the borrower or a close family member lives in, or will live in, and it is regulated by the Financial Conduct Authority. It is often used by homeowners who have found a new home but have not yet sold their old one. Slower house sales are a likely reason for the rise. If that describes you, our pages on regulated bridging loans and regulated and non-regulated bridging explain the extra protections and how cases are handled.

Rates, loan to value and speed

Pricing barely moved. The average monthly interest rate in Bridging Trends eased from 0.82% to 0.81%, and the average term stayed at 12 months. Average completion time fell by seven days, from 53 to 46. The BDLA's average loan to value rose slightly to 57.66%, well below the 70% to 75% that many bridging lenders allow on a first charge, which points to borrowers putting meaningful equity into their deals.

An average rate is just that. What you are offered depends on the property, the loan to value, your experience and the strength of the exit. Our guide to bridging loan interest rates explains what moves pricing, and how long a bridging loan takes covers the steps that decide your own timescale.

What it means for your next deal

A quieter market can suit a well-prepared borrower. Lenders still have money to lend, and with fewer applications coming in, a clean case with a clear exit stands out. Three things help:

• Show an exit that works at today's prices, not last year's.
• Have your documents ready before you apply; our bridging loan documents checklist lists what lenders ask for.
• Compare more than one lender. Appetite for chain breaks, second charges and heavy refurbishment varies a lot between lenders.

We search the market and approach the lenders whose criteria fit your deal. To see where you stand, start with Instant Quotes or read how our bridging loan broker service works.

Common questions

This article reports news and published figures as at 17 October 2026. It is for general information only and is not legal, tax or financial advice. Bridge & Build Finance is a commercial finance brokerage service, not a lender. Finance is subject to status, lender criteria, valuation, underwriting and approval.