The Intermediary – January 2026 - Flipbook - Page 50
SPECIALIST FINANCE
Opinion
2026 – what does it
have in store for
the market?
W
hile few will
mourn the
passing of
2025, which
was a tough
year for
many, the bridging finance sector
demonstrated remarkable resilience,
defined by the exceptional agility,
efficiency, and adaptability it is
known for. Despite broader economic
concerns, bridging finance proved
itself once again as a strategic tool
for borrowers seeking speed and
flexibility,
Looking ahead to this year the
outlook is more promising. The
most recent HMRC figures show that
transactions continue to rise as buyers
take advantage of lower mortgage
rates, with many who put off decisions
to move until they discovered what
the Chancellor had in store, deciding
now is the time to buy. Although
confidence in the Government is low
following two damaging Budgets,
needs-based buyers have to move and
simply can’t wait for the political or
wider economic situation to improve.
We hope to see further market
activity in the form of an increase in
transactions this year, encouraged
by lower bank rates. However, the
high cost of moving remains an issue,
and is deterring many from doing so.
Stamp Duty in particular is a huge
barrier to mobility and with the
Chancellor missing an opportunity
to reduce or reform it in the Budget,
the hope is that further interest rate
reductions this year will encourage
transactions instead, enabling the
housing market to function more
effectively. We have long called for
a restructuring of Stamp Duty to
encourage downsizing in particular,
freeing up larger family homes for
those trying to move up the ladder,
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The Intermediary | January 2026
and once again an opportunity to do
that has been missed.
With Nationwide and Halifax
both pointing to a fairly flat property
market in terms of prices towards the
end of last year and not much growth
expected this year, although this won’t
be welcomed by homeowners, it is
beer for all concerned.
Rising cost of living
While the interest-rate environment
is more positive, with lenders keen
to offer aractive mortgage rates, it
doesn’t take away from the fact that
wages aren’t rising quickly enough to
combat the higher cost of living. One
can only buy what one can afford, so
flaer property prices are a good thing
for the market as a whole. However, a
non-rampant housing market is not
enough to provide the impetus needed
when encouraging buyers and sellers
to transact, and in particular, when
persuading first-time buyers to take
the plunge. The Government must
do more to encourage transactions
through targeted stimulus for firsttime buyers, perhaps in the form of
a resurrected Help to Buy scheme.
Encouragement for developers and
housebuilders is also lacking, and
without it, the Government’s new
homes target is unlikely to be reached.
Looking ahead, the momentum
from 2025 is set to usher in a new
era of specialisation, technology,
and sustainability for the industry,
especially in bridging. We expect
to see the widespread adoption of
technological advancements and
streamlined digital platforms as
lenders, including ourselves, look at
ways to improve our processes. On
our part, we will continue enhancing
operational efficiency to significantly
accelerate application processes,
changing how we assess property
TOMER ABOODY
is director at MT Finance
values, risk, and exit strategies.
Lenders remain keen to lend and
increased competition is likely to
feature this year, which is good news
for borrowers as it should drive
product innovation, resulting in more
customised loan structures, higher
loan-to-value (LTV) products, and a
proliferation of niche offerings. We
also anticipate that bridging will be
used more widely, moving beyond
traditional residential and investment
property transactions to include
commercial-to-residential conversions
and strategic business finance and
debt consolidation. With more
brokers entering the bridging space
and educating themselves as to its
benefits, we expect this year to bring
further market expansion beyond
traditional specialist finance circles
into mainstream mortgage advisory.
Whether supporting investors
capitalising on opportunities, property
developers requiring flexible funding,
or existing borrowers navigating
market challenges, bridging finance
will continue to cement its position
as an essential component of the UK
property finance landscape.
We strongly believe that
another focus for 2026 should be a
responsibility to contribute positively
to society. It’s vital not to forget the
importance of social initiatives and
at MT Finance these form part of our
broader ESG strategy, reflecting our
values and our commitment to our
community. We plan to build on the
strong momentum of 2025, expanding
our community engagement,
sustainable practices and embedding
ESG principles into the heart of
everything we do – we encourage
others to do the same. ●
