The Intermediary – September 2026 - Flipbook - Page 72
BRIDGING
Opinion
Regulated bridging
deserves more
attention
B
ridging has
traditionally been
linked with property
investors, auction
purchases and
refurbishment. But
there is a growing role for it in the
residential market, particularly where
a client has found the home they want
but cannot complete their purchase
because their existing property has
yet to sell. In these cases, regulated
bridging can be vital.
The problem
According to Zoopla, once a buyer
has found the home they want, it
normally takes between 15 and 20
weeks to complete the purchase.
In some cases, it can take as long as
six months. There is also the time
needed to sell the existing property.
Rightmove shows that it took sellers
an average of 63 days to secure a buyer
in July 2026. In London, the figure
reached 73 days.
A client may have found exactly
the right property, agreed a price and
started the legal process, but their
ability to complete can still depend
on their own buyer and every other
transaction further down the chain. If
one link fails, the whole transaction
can be put at risk, and this is where
regulated bridging can help.
One of the most useful applications
is allowing a homeowner to buy their
next property before the sale of their
current home has completed.
Location, price, accessibility,
schools and family requirements can
all narrow the number of homes that
meet a client’s needs, so when the
right one comes up, losing it because
an existing sale has not completed can
be extremely frustrating.
Subject to the client’s circumstances,
short-term finance can provide
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The Intermediary | September 2026
the funds required to complete the
onward purchase. The bridge can
then be repaid when the existing
property is sold.
This can be particularly useful
when a client is under pressure from a
vendor who does not want to wait for a
long chain to complete. It can also help
clients who are downsizing, moving
closer to family or buying a property
that meets a very specific need.
Keep chains together
An unexpected chain-break creates a
similar scenario, and is another area
where regulated bridging can play a
key role.
A buyer may be close to exchange
when a transaction further down
the chain fails. Significant time and
money may already have been spent
on surveys, solicitors and other costs.
In such instances, a regulated bridge
may allow the purchase to continue
rather than forcing them to withdraw
and start the process again.
This is not simply a theoretical
use for the product, Bridging Trends
data shows that preventing a chainbreak accounted for 18% of bridging
transactions in Q2. The same data
also showed that average bridging
completion times fell from 53 days in
Q1 to 46 days in Q2.
Speed maers, but so does certainty.
When a client is working to a fixed
completion date, having a lender that
understands the case, the property
and the proposed repayment plan can
make a major difference.
Not simply about speed
Regulated bridging will not be right
for every borrower, it’s short-term
finance and there must be a credible
way of repaying the loan. In most
regulated bridging instances, that will
be the sale of the existing property.
EDDIE LAU
is broker account manager
at Norton Broker Services
Costs also need to be properly
considered, as a bridge should not
be recommended simply because it
can complete quicker than another
form of borrowing. The client must
understand the interest, fees, term
and what happens if their planned sale
takes longer than expected. This is also
why advice is so important.
Regulated mortgage lending comes
with clear consumer protections.
Financial Conduct Authority (FCA)
rules define a regulated mortgage
contract by reference to factors
including the borrower, the security
and residential use of the property,
with at least 40% of the land used, or
intended to be used, in connection
with a dwelling.
Brokers must identify regulated
cases correctly and make sure the
client’s circumstances and repayment
plans have been fully assessed.
Residential brokers
More brokers and clients are starting
to recognise where short-term finance
can help. A bridge should never be
treated as the automatic answer to a
slow property transaction, but neither
should clients lose a property simply
because bridging was not considered.
With purchases commonly
taking 15 to 20 weeks aer a suitable
property has been found, and sellers
still waiting around two months on
average just to secure a buyer, there is
plenty of scope for delays and chain
problems. The key is knowing when
regulated bridging may be suitable
and having access to specialists who
understand the lenders, criteria and
packaging requirements involved. ●
