The Intermediary – February 2026 - Flipbook - Page 38
FIX AND FLIP
APPEAL
WHY BRIDGING FINANCE IS CENTRAL TO
REFURBISHMENT-LED INVESTMENT
by Marvin Onumonu
As the housing sector contends with
improved automated valuation models (AVMs),
evolving regulation and unpredictable economic
and product innovation, all of which support
conditions, a new wave of transformation has
rapid decision-making and delivery of funds.”
the potential to reshape property markets up
to meet tight deadlines. Competitive funding
and rural high streets alike, run-down and
markets have also helped keep pricing keen,
‘unmortgageable’ properties are being bought
making fast, flexible capital more accessible for
with the purpose of being renovated quickly and
investors acting on time-sensitive opportunities.”
resold for profit.
This strategy, known as ‘fix and flip’, is
increasingly facilitated by nuanced and flexible
Narinder Gill, head of bridging at Coreco, has
also seen this shift in perception. He observes:
“Auction and refurbishment finance have
auction finance and refurbishment bridging
really come into their own since the Covid-19
loans, which have the potential to transform not
pandemic. There has been an abundant increase
only the pace of property transactions, but the
in lenders and products available to both
foundations of UK property investment.
experienced developers and, more importantly,
So why do neglected homes, shops, and
vacant offices have the chance to become
novice and first-time developers.”
Indeed, with bridging no longer seen as a last
hot commodities? How are specialist lenders,
resort – but instead, a strategic tool for unlocking
intermediaries, and auction houses enabling
opportunities – it serves to empower a new
investors to seize opportunity amid regulatory
generation of property investors and developers.
change and market pressure?
The answers lie in a new era of speed, certainty
Andrew Cappaert, group head of national
accounts at Brightstar Financial, reinforces
and entrepreneurial vision.
this point.
Bridging demand
major factor in fix and flip activity, and we have
The fix and flip movement is inseparable from
definitely seen over the past two to three years an
the evolution of bridging finance. While once
increase in refurb bridging, creating a proactive,
seen as a niche, high-cost resource for distressed
rather than reactive, usage of bridging finance.”
sellers, bridging has become a driving force
behind modern property investment.
Within this, auction finance – a form of
bridging designed for the rapid timeframes of
He adds: “Auction finance has always been a
Cappaert notes that the main obstacles for
these transactions are speed and property
condition. He explains that traditional
lenders are generally unwilling to finance
property auctions – and refurbishment bridging
unmortgageable or severely dilapidated
loans have emerged as popular specialist options.
properties, and when they do, the process is often
Steve Matthews, head of residential lending
36
He adds: “Specialist lenders are structured
and down the country. Across city terraces
too slow to meet auction deadlines or allow for
at Octopus Capital, says: “Bridging finance has
competitive bidding. Bridging addresses this gap
evolved significantly through better technology,
by enabling purchases to complete within weeks
The Intermediary | February 2026
