Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Bridging Lenders Report Market Growth and Broker Importance in 2026 Survey

A majority of bridging lenders say origination volumes have increased in 2026, according to the latest Bridging Market Survey from Interpath and the Bridging & Development Lenders Association (BDLA). The survey also highlights the growing importance of independent brokers as a distribution channel for bridging loans.

The survey found that 52% of bridging lenders reported a rise in origination volumes this year, despite a softer market compared to last year. Lower interest rates were cited as a factor supporting ongoing activity in the sector.

Most respondents (67%) said the average monthly interest rate for bridging loans over the past 12 months was between 0.75% and 1%, up from 59% in the previous year. Looking ahead, 54% of lenders expect origination volumes to remain unchanged, while 35% predict further growth. This marks a stabilisation in sentiment compared to the previous survey, where 75% forecasted market growth.

The survey also revealed that 46% of respondents expect a decline in institutional funding, and 37% anticipate a deterioration in credit quality. Despite these concerns, loan terms and loan-to-value (LTV) levels were reported as stable.

Independent brokers were identified as the most important distribution channel by 61% of bridging lenders, an increase from 55% last year. Additionally, 37% ranked independent brokers as the second-most important channel. In contrast, 22% of lenders named master brokers as the most important, down from 27% last year, while only 15% cited direct channels as key for origination.

Refurbishment was reported as the primary or secondary reason for taking out a bridging loan by 31% and 25% of lenders, respectively, consistent with last year’s results. Rebridging was cited as the most common use by a fifth of respondents. Mortgage delays were the least popular reason, with 31% placing it as the fifth-most chosen reason and just 4% ranking it first.

The survey also found a shift towards slightly longer loan terms, with 48% of lenders reporting average bridging loan terms of 12-15 months, up from 43% last year. Loans with terms of 9-12 months declined from 47% to 37%.

These findings underline the ongoing relevance of bridging finance in the UK property market, particularly for refurbishment projects, and the central role of brokers in facilitating these transactions.