The Intermediary – July 2026 - Flipbook - Page 48
BRIDGING
Opinion
How to begin
investing with
bridging
M
any people want
to start property
investing, but the
first question is
oen the wrong
one. It is not
always “do they have enough money?”
but “does the deal actually work?”
Bridging loans are sometimes
discussed as a quick way into property.
They can be, but only in the right
situation. A bridge may help a
borrower buy at auction, secure a
property that needs work, or complete
quickly when a standard mortgage
is not suitable. It does not, however,
make a weak deal stronger.
The risk is that borrowers focus
on geing the property and think
about repayment later. That is where
problems start.
Start with the exit
Weak bridging conversations begin
with the property. Strong ones begin
with repayment.
A borrower may be considering
an auction purchase, a vacant home,
or a property that is not currently
mortgageable. Those circumstances
can make short-term finance relevant.
Yet the central question is not just
whether the borrower can complete
quickly. It is whether they can
exit cleanly.
Sale and refinance remain the
two main routes. A sale depends
on realistic demand, control over
refurbishment, comparable evidence,
and sufficient margin to absorb delays.
A refinance depends on the completed
property meeting criteria, rental
coverage, valuation confidence and
affordability. That is where advisers
add value. The borrower may see the
loan as the solution. The intermediary
should test whether the exit is strong
enough to justify the loan.
46
The Intermediary | July 2026
JOHN BRODIE SHANKS
is head of sales and mortgages
at Angel Property Finance
Bridging Trends reported that average
completion times fell to 43 days in
2025, the lowest level since 2017. For
auction buyers and time-sensitive
transactions, that speed can be
decisive. The wider market, however,
gives lile room for lazy assumptions.
Annual UK house price growth was
static in March 2026, with the average
property valued at around £268,000.
Investors cannot rely on broad market
growth to cover weak margins.
That changes the adviser
conversation. Refurbishment budgets,
assumed end values, conveyancing
delays, contractor availability and
valuation downgrades all need to be
tested before completion, not when
interest is already rolling.
The opportunity is still there,
particularly when a borrower can
acquire an asset at below-market
value, improve it, and exit on clear
terms. But the deal has to work on its
own numbers.
The overlooked advantage
Many articles on property investing
focus on the product. In practice,
readiness oen maers more.
Prepared borrowers are easier to
place. They understand why lenders
need evidence, why the exit maers
and why incomplete information
slows underwriting. They can
explain the property, the works, the
funding gap, the contingency and the
repayment route clearly.
That does not mean every investor
needs a large portfolio. It does mean
they should approach the transaction
as a process, not a punt. Reviewing
opportunities consistently, speaking
to advisers early and documenting
costs properly can maer more than
waiting for a higher income.
There is also a useful mindset shi.
Instead of asking, “Can I afford this?”
borrowers should be encouraged to
ask, “How would this work?” That
reframes the discussion around
structure, risk, partnerships, finance
and timing.
Raising the bar
Consumer Duty makes the framing
of specialist lending even more
important. Bridging can support good
borrower outcomes when it solves
a real timing or property-condition
problem. It can lead to poor outcomes
when the client misunderstands cost,
timescale or repayment risk.
Advisers must evidence why the
recommendation fits the borrower’s
objective, why alternatives may
be unsuitable, and how the client
understands the implications. Product
transfers, mainstream remortgages
and longer-term buy-to-let options
may all be relevant comparisons, even
where they are not the right answer.
The best answer to how to begin
property investing is not to find a
property and secure finance. It is to
build a deal that can survive scrutiny.
Bridging loans have a legitimate
role. They can help investors move
quickly and create value. Yet they
only work properly when the exit is
credible, the borrower is prepared,
and the adviser is willing to challenge
weak assumptions.
For intermediaries, that is the real
opportunity: not faster finance for
its own sake, but beer-structured
specialist lending that protects
borrower outcomes and the integrity
of the transaction. ●
