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.

Owner-occupiers turn to £1.8bn in bridging loans to speed up transactions

UK homeowners took out £1.83bn in new bridging loans in the year to 31 March 2026, according to research by Karis Capital. This is an increase from £1.75bn in the previous year.

The research found that more owner-occupiers are using regulated bridging loans to avoid delays in property chains. Instead of waiting for their existing property to sell, buyers are borrowing through the bridging loan market to complete purchases more quickly. Once their property is sold, they can repay the bridging loan and move onto a long-term mortgage.

Karis Capital stated that bridging loans have enabled borrowers to ‘break the chain’ in an unpredictable housing market, where selling an existing property before buying another can be difficult. The firm noted that fluctuating interest rates have slowed the property market, making bridging loans an alternative route for some buyers to complete transactions.

For letting agents and inventory clerks, the increased use of bridging loans by owner-occupiers may lead to faster property transactions and changes in the timing of move-ins and move-outs. This trend could impact the scheduling of inventories and property management tasks.