New Bridging Trends data highlights the continued importance of bridging finance for homeowners, investors and businesses, with regulated lending reaching 48% of contributor transactions in Q2 2026.
Gross contributor lending totalled £173.1 million during the second quarter, down 15% from the £199.2 million recorded in Q1. The decline came amid increased global uncertainty, which led some borrowers to postpone property transactions. However, the data also demonstrates how borrowers continued to adapt, using the flexibility of bridging finance to progress transactions and unlock opportunities.
Preventing a chain break and purchasing an investment property were the most popular uses of bridging finance in Q2, each accounting for 18% of all transactions. This compares with 14% and 22% respectively in Q1.
The increase in chain-break transactions coincided with a significant rise in regulated bridging lending, which increased from 41% of contributor transactions in Q1 to 48% in Q2. This represented the largest quarterly increase in regulated bridging since Q1 2022.
Bridging finance was also used strategically by borrowers seeking to take advantage of investment opportunities. Demand for auction finance increased from 11% in Q1 to 14% in Q2, highlighting the continued role of short-term finance in time-sensitive property acquisitions.
There was further growth in demand for finance to support refurbishment and business requirements. Heavy refurbishment bridging increased from 6% of transactions in Q1 to 10% in Q2, while funding a business injection more than doubled from 4% to 9%.
Borrowers also increasingly used bridging finance to release equity without disturbing existing mortgages. The proportion of second-charge bridging transactions rose from 9% in Q1 to 22% in Q2, the highest level recorded since Q1 2021.
Despite the increase in second-charge lending, the average monthly interest rate remained broadly stable, edging down from 0.82% in Q1 to 0.81% in Q2. The average LTV increased from 52% to 55%, remaining below 60%.
Speed also remained a key consideration for borrowers. Average completion times fell from 53 days in Q1 to 46 days in Q2, while the average loan term remained unchanged at 12 months.
Broker searches tracked by Knowledge Bank also reflected increasingly complex borrowing requirements. Cross-collateral charges recorded the strongest increase in search activity for the second consecutive quarter, while maximum property value, lease extensions before completion and holiday lets were also among the notable areas of interest.
Bridging Trends combines bridging loan completions from specialist finance packagers operating across the UK bridging market, including Adapt, Brightstar Financial, Brilliant Solutions, Capital B, Clever Lending, Clifton Private Finance, Complete FS, Enness, Impact Specialist Finance, LDNfinance, Optimum Elite and Sirius Finance.
The latest figures demonstrate how bridging finance is increasingly being used for a broad range of purposes rather than solely as a last-resort funding solution. For homeowners, investors and business owners, its flexibility can provide a means of navigating time-sensitive transactions, unlocking existing equity and progressing opportunities where conventional lending may not align with the circumstances.
For high-net-worth borrowers in particular, specialist bridging solutions can form part of a wider financing strategy, providing access to liquidity while allowing existing assets and longer-term financial plans to remain intact.
Read the full article in Bridging & Commercial.
