Take a look at the latest infographic to discover the general trends that shaped the UK bridging finance market during Q1 2026.
Key Points:
Purchasing an investment property remains the most popular use of bridging finance
Demand for heavy refurb finance hits all-time low
Average monthly interest falls as LTV also drops
Proportion of unregulated bridging loans at highest level since Q4 2021
Director’s comments
Sonny Gosai, bridging and commercial director at Brilliant Solutions, comments:
“Q1 2026 highlights a bridging finance market that remains resilient and increasingly selective. While contributor gross lending held firm at nearly £200m and first charge lending continued to dominate, the data shows borrowers prioritising speed, security and investment-led opportunities. Investment purchases remained the leading use of bridging loans, while demand shifted away from heavy refurbishment and business-purpose borrowing, reflecting a more cautious but opportunity-driven market landscape.”
Chris Oatway, CEO at LDN Finance, comments:
“Investor confidence remains strong, but the standout trend is the reduction in average LTVs, which suggests lenders are becoming more cautious amid ongoing global and economic uncertainty. The market is clearly favouring lower-risk transactions, with borrowers and lenders alike prioritising straightforward acquisition and refinance deals over heavier refurbishment projects where construction costs, programme delays and sales tail risk create greater exposure.”
Raphael Benggio, Bridging Director at MT Finance, comments:
“It is encouraging to see that bridging lending remained stable going into 2026. Investors and landlords in particular seemed to be maximising bridging’s potential in Q1 and the dip in LTV shows that borrowers were careful about not overburdening themselves. We will have to wait and see to get a real measure of how the conflict in Iran has affected the market but the bridging sector will continue to offer solutions to landlords, business owners and homeowners alike.”
Shane Chawatama, sales director at Knowledge Bank, comments:
“These search trends within bridging highlight a clear shift in investor behaviour. While interest in first-time landlord scenarios has fallen significantly, we’re seeing notable growth in areas such as development exits and Grade II listed properties.
“The rise in development exit searches, in particular, suggests that more investors are actively seeking to maximise value through refurbishment or redevelopment before refinancing or sale. This is mirrored in the increase in searches around listed buildings, where there is clear potential to add value, albeit alongside tighter planning and renovation restrictions.
“Together, these trends point to a market that is becoming more strategic, but also one that must navigate the ongoing challenges of upgrading existing housing stock, particularly in the context of evolving EPC requirements and regulatory pressures.”