The Intermediary – September 2026 - Flipbook - Page 74
BRIDGING
Opinion
What good bridging
looks like now
O
ne of the biggest
changes I’ve noticed
in bridging recently
is that speed on its
own is no longer
enough. Brokers
still need lenders to move quickly,
of course, but what really maers
is having confidence in the decision
they’re geing, and knowing where
they stand from the outset.
In my experience, that comes from
knowing the market and taking the
time to understand what’s in front of
you. Using technology to enable this
is essential, and frees up vital time
where judgement and a conversation
between broker and lender make the
real difference.
That’s particularly important as our
own bridging business grows. We’ve
more than doubled our loan book and
are on track to originate £250m of new
lending this year, with an ambition to
reach £500m by 2027.
As we grow, we need to make sure
brokers still get the same clarity, access
to people and confidence they need
from us.
For me, that’s the balance bridging
lenders need to get right. Speed will
always maer, but it needs to be
backed by good technology, clear
communication, and people who are
there when brokers need them.
Confidence from the outset
That starts with being clear with
brokers early on about whether we can
support what they’re trying to do.
Even when the decision isn’t the one
they hoped for, knowing where they
stand means they can move on and
find the right solution.
That becomes even more important
when you consider the borrowers
we support.
They might be buying a property,
refinancing or raising funds for their
next investment, and delays can have
a significant knock-on effect. Brokers
need to be able to give them a clear
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The Intermediary | September 2026
steer, and that relies on the lender
understanding what’s in front of them
from the start.
Of course, not every part of a case
needs the same level of input, and
using technology in these areas can
help move things along more quickly.
A valuation is a good example of that.
Recently, we extended our use of
automated valuation models (AVMs)
to eligible residential bridging at up to
75% loan-to-value (LTV) on loans of
up to £2m.
We made that change aer extensive
research comparing AVM results with
physical valuations, so we could be
comfortable extending their use on
larger transactions.
Where an AVM is suitable, it can
save the borrower the time and cost
of a physical inspection, while also
giving them an earlier view of the
property’s value.
It’s a good example of using
technology to support the human side
of bridging.
If we can make that stage quicker
on the right case, our team has more
time to speak to brokers and focus
their aention on the areas that
need human judgement and real
conversation.
Knowing what’s next
That doesn’t stop once the initial
bridge has been agreed.
Where longer-term finance is the
plan, being able to look at both stages
from the outset can give the broker
and their client a much clearer picture
of what comes next.
We’ve seen that with bridge-to-term
at Allica, which now accounts for
around 45% of our bridging enquiries.
By providing the initial bridge and
the longer-term commercial loan,
we can work with the broker on both
requirements from the beginning,
rather than treating them as two
separate conversations.
That can be particularly valuable
for borrowers. If they know how the
STEVE PALFREEMAN
is head of sales – bridging
at Allica Bank
longer-term funding could work
from the start, they can plan ahead
with greater certainty, particularly
when there are other investments or
commitments to consider.
It also puts the broker in a stronger
position to guide them through both
stages rather than having to revisit the
funding question later on.
Keeping the balance
All of this comes back to balance.
Brokers need speed, but they also need
to know they can rely on the lender
throughout the transaction.
That means making good use of
technology where it can help, while
keeping experienced people close
to the cases where their judgement
truly maers.
Automated valuation models and
bridge-to-term are two different
examples of that in practice.
One can make the valuation
stage quicker where the property is
suitable, while the other can provide
more certainty about the funding
that follows.
Both cases give brokers a clearer
path through the transaction, and
more confidence in the conversations
they’re having with the businesses
they support.
Speed will always be fundamental
to bridging. But when it’s backed by
good communication, clear decisions,
the right technology and people
who understand the businesses
they’re working with, it builds the
trust brokers need to move forward
with confidence. ●
