The Intermediary –- May 2026 - Flipbook - Page 56
BRIDGING
Opinion
Bridging is
fundamental to a
modern market
T
he UK bridging sector
surpassing £10bn in
annual completions is
about far more than
market growth. It
reflects a much broader
structural shi.
For many years, bridging finance
was viewed as a niche product, used
only in very specific circumstances
where speed was required or
mainstream lending wasn’t
available. But the market has evolved
significantly since then, and so too has
the role bridging plays within it.
That change has largely been driven
by growing complexity. Property
transactions no longer progress in a
straightforward or predictable way.
Borrowers are navigating stubborn
inflation, elevated interest rates,
changing expectations around the
Bank of England base rate, tighter
underwriting, geopolitical instability,
and increasing delays across various
parts of the transaction process.
Timing has become less certain,
funding requirements are changing
more frequently, and borrowers oen
need to adapt their plans in real time.
Speed and flexibility have become
significantly more valuable than they
were even a few years ago.
This is where bridging finance has
stepped in and increasingly become
essential. Unlike many traditional
lending routes, bridging is structured
around execution. It is designed to
move quickly, adapt to changing
circumstances, and provide borrowers
with certainty in situations where
delays or rigid criteria could otherwise
cause transactions to collapse.
That ability to execute is becoming
increasingly important, because
modern property transactions rarely
remain static from start to finish. A
valuation may come back lower than
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The Intermediary | May 2026
expected. A refinance may be delayed.
A chain may break. A property may
require more refurbishment work
than originally anticipated. Planning
issues, legal complexities, or changing
market conditions can all emerge
during the course of a transaction.
These are becoming common
features of the market. And when
transactions become more complex,
bridging finance oen becomes the
solution that keeps them moving.
The bridging multi-tool
We’re seeing this reflected not just
in the overall growth of the sector,
but in the breadth of scenarios where
bridging is now being utilised.
Chain-breaks remain a major use
case, particularly where delays and
uncertainty can derail transactions
at any stage. At the same time, we’re
seeing increasing demand for bridging
to facilitate refurbishments, auction
purchases, refinancing strategies,
and time-sensitive acquisitions where
borrowers need to move decisively in
order to secure opportunities. This
is particularly relevant in sectors of
the market where opportunities are
becoming more competitive.
Take auction properties. Many of
these assets are sold at significant
discounts because they require
refurbishment, have structural
issues, or are considered unsuitable
for mainstream mortgage finance.
Investors may have only a maer
of weeks to complete, meaning
traditional lending routes are oen
impractical. Specialist bridging and
refurbishment finance enables those
transactions, providing both the speed
to secure the asset and the flexibility to
fund the works required.
Similarly, the ongoing focus on
Energy Performance Certificate (EPC)
improvements across the private
JONATHAN SAMUELS
is CEO of Octane Capital
rented sector is creating growing
demand for refurbishment. Many
investors are now looking to upgrade
older housing stock, improve energy
efficiency, and reposition assets within
an evolving regulatory environment.
Again, these projects oen require
flexible funding structures and the
ability to move quickly.
The recent acquisition of Octane
Capital by Aldermore Bank is a clear
example of how larger financial
institutions now view specialist
finance as an increasingly important
part of the wider lending landscape.
What these institutions are
recognising is that bridging is not
simply a product that can be replicated
through capital alone. The success
of specialist lending is built on
speed, judgement, flexibility, and
the ability to navigate complexity in
real time. It requires lenders that are
structured to make decisions quickly
and pragmatically, particularly when
transactions evolve away from their
original form. Specialist lenders will
continue to play a central role, even as
institutional involvement increases.
In many respects, bridging finance
is evolving in the same way the
wider property market is evolving.
It is becoming more strategic, more
sophisticated, and more integrated
into how transactions are delivered.
The days of bridging being viewed
purely as a last-resort product are
long gone. Instead, it is becoming a
core financial tool used by borrowers,
investors and developers. As long as
complexity continues to define the
market, the role of bridging finance
will only continue to grow. ●
