Bridging Trends Q2 2026 was released earlier today and highlights how bridging loans have been a vital lifeline for homeowners, landlords and businessowners amid economic uncertainty.
Key Points for Q2 2026:
- Preventing a chain break and purchasing an investment property tie as most popular uses of bridging finance
- Regulated bridging sees its biggest increase in demand since Q1 2022
- Proportion of second charge bridging loans at highest level since Q1 2021
- Average completion time falls seven days.
The impact that the conflict in Iran has had on borrowers was highlighted today with gross contributor lending coming in at £173.1 million, a 15% drop from Q1’s £199.2 million. Trump’s initial promises of a short, sharp operation may have seen some borrowers postpone transactions at the end of Q1 and start of Q2 – resulting in the reduced contributor total – but as the war has continued, many have utilised bridging’s versatility.
With high street lenders pulling products and increasing rates, bridging has been a vital tool for those with tight deadlines. Preventing a chain break and purchasing an investment property were the most popular uses of bridging loans and both accounted for 18% of all transactions in Q2, compared to 14% and 22% in Q1 respectively. The rise in bridging loans used to prevent a chain break likely contributed to the increase in regulated bridging loans, which rose from 41% in Q1 to 48% in Q2; the biggest quarterly increase since Q1 2022.
Bridging was not just used as a last resort, though. In fact, savvy borrowers have been quick to capitalise on opportunities, with demand for auction finance rising from 11% in Q1 to 14% in Q2. Elsewhere, homeowners, investors and business owners have all sought to unlock equity without disturbing their current mortgages. The percentage of heavy refurb bridging loans rose from 6% in Q1 to 10% in Q2 while funding a business injection more than doubled, coming in at 9% in Q2 compared to 4% in Q1. This focus on equity release saw the proportion of second charge bridging loans soar from 9% in Q1 to 22% in Q2, the highest it’s been since hitting 22.2% in Q1 2021.
Despite the increase in second charge lending, the average monthly interest rate was relatively static, decreasing marginally from 0.82% in Q1 to 0.81% in Q2. Encouragingly, the average loan-to-value (LTV) may have risen from 52% in Q1 to 55% in Q2 but it is still well below 60%, showing that borrowers continue to not overburden themselves.
As borrowers prioritised speed, the average completion time fell from 53 days in Q1 to 46 in Q2, pointing to greater efficiencies among all parties. The average term remained static at 12 months. According to Knowledge Bank, the search terms made by UK bridging finance brokers that saw the biggest changes were ‘cross collateral charges’, ‘lease extension before completion’ and ‘holiday lets’.
Bridging Trends combines bridging loan completions from several specialist finance packagers operating within the UK bridging market: Adapt, Brightstar Financial, Brilliant Solutions, Capital B, Clever Lending, Clifton Private Finance, Complete FS, Enness, Impact Specialist Finance, LDNfinance, Optimum Elite and Sirius Finance. The data for top broker criteria searches is supplied by Knowledge Bank.
Steve Sanderson, commercial and bridging specialist at Clever Lending, comments:
“The Q2 data should act as a reminder of just how versatile bridging loans can be. The fact that more borrowers are utilising second charges to access the equity where some products don’t allow is testament to the support brokers and lenders have been giving their clients to ensure a positive outcome is achieved. I expect this approach to thinking outside of the box to continue well into Q3 and Q4.”
Raphael Benggio, bridging director at MT Finance, comments:
“Considering the ongoing uncertainty, it was inevitable that the bridging industry was going to be impacted by global events. Instead of postponing transactions indefinitely, borrowers have just adapted and it is extremely encouraging to see that they continue to be supported by the specialist finance sector.”
Shane Chawatama, sales director at Knowledge Bank, comments:
“Bridging lending continued to shift towards larger and more complex cases in Q2. ‘Cross collateral charges’ was the standout riser for the second consecutive quarter, while ‘maximum property value’ also saw strong growth, suggesting increased demand for higher-value borrowing. ‘Development finance for commercial property’ was another notable mover, highlighting continued interest in commercial development opportunities and more sophisticated funding requirements. Commercial properties are continuing to be a good option for investors in the market.”
To view the Bridging Trends Q2 2026 infographic, please visit www.bridgingtrends.com
