The Intermediary – February 2026 - Flipbook - Page 33
BRIDGING
Opinion
Activity amid
ongoing uncertainty
T
he bridging market
has shown clear signs
of momentum in
recent months, even as
uncertainty continues
to shape sentiment
across the wider property sector. Based
on internal data comparing Q3 2025
with Q4 2025, a number of key trends
have emerged that are influencing
both broker behaviour and borrower
decision-making.
One of the most noticeable
developments has been increased
competition on pricing. Our data
shows a reduction in interest rates:
there are four main lenders, all
competing at around the 0.55% to
If the property
market does dip, there is
likely going to be an influx
of investors trying to take
advantage of that to get
good deals on property”
0.58% per month range on regulated
(owner occupied) deals. This is
a meaningful shi and reflects a
growing willingness among lenders
to compete for quality businesses,
particularly where affordability, loanto-value and exit strategies are well
evidenced.
Time-sensitive
For brokers, this has helped position
bridging as a more accessible shortterm solution for owner-occupiers
who may be navigating time-sensitive
situations such as chain breaks,
auction purchases, or delayed sales.
While bridging is still a specialist
product, the increased alignment in
pricing between lenders has made
conversations around cost more
straightforward and transparent.
Another clear trend emerging
from our data is increased auction
activity. This could be due to investors
seeking a good opportunity or
homeowners trying to get a bargain.
With transitions in the wider market
oen taking longer to progress,
auctions continue to offer certainty of
purchase, provided buyers can meet
strict completion deadlines.
Bridging finance remains well
suited to this environment, offering
speed and flexibility where traditional
lending routes may struggle to keep
pace. Our brokers are increasingly
seeing clients who are prepared to act
decisively when the right opportunity
presents itself, particularly where
properties require refurbishment
or fall outside mainstream
lending criteria.
Exploring options
Market engagement has also improved
since the turn of the year. Since the
new year, we’ve seen an uptick in
enquiries and a more active market.
While this does not necessarily point
to a full recovery in confidence, it does
suggest that borrowers are becoming
more willing to explore options rather
than delaying decisions definitely.
Despite this increased activity,
caution remains a defining feature
of the current landscape. There
is still hesitation in the property
market generally speaking, largely
being driven around uncertainty on
where the housing market will be
in six months’ time. Many clients
remain wary of making long-term
commitments without greater clarity
on pricing, values, and broader
economic conditions.
This hesitation is being amplified
by negative commentary across the
media and online platforms. As noted
recently, the Financial Times reported
recently about the doom and gloom of
mortgage brokers online predicting
turnout for the residential market
FERGUS ALLEN
is head of bridging
at Clifton Private Finance
in 2026. Unsurprisingly, this probably
isn’t helping consumer confidence
as a whole but even less so for clients
looking at the possibility of taking on
short-term debt.
Different picture
However, the way borrowers approach
short-term finance is fundamentally
different from how they view longterm borrowing. The picture is very
different for a client looking at a
12-month term versus a 25-year term.
Bridging clients are typically focused
on executing a defined strategy
over a relatively short timeframe,
rather than trying to predict where
the market will be several years
down the line.
This distinction continues to
support demand for bridging, even in
periods of uncertainty. The advantage
for the bridging industry is that if
the property market does dip, there
is likely going to be an influx of
investors trying to take advantage
of that to get good deals on property.
Historically, soer market conditions
oen encourage experienced
investors to act, particularly where
speed of completion can secure
favourable pricing.
In many cases, this activity may
include completing works to a
property or the promise of completing
quickly by using fast finance such as
bridging. For brokers, this highlights
the importance of presenting bridging
as a proactive tool, one that enables
clients to move quickly, manage
risk effectively and retain flexibility
around their exit. ●
February 2026 | The Intermediary
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