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.
Regulated Bridging Loans Reach Highest Quarterly Level Since 2022
Regulated bridging lending increased from 41% to 48% of all bridging transactions in Q2 2026, marking the largest quarterly rise since Q1 2022. The latest Bridging Trends report shows that more borrowers are turning to bridging finance to keep property transactions moving amid wider economic uncertainty.
The report highlights that the use of bridging loans to prevent property chain breaks rose from 14% in Q1 to 18% in Q2. Borrowers are increasingly seeking the speed and flexibility of bridging finance, especially as some mainstream lenders have withdrawn products or repriced loans.
Gross contributor lending in the bridging sector fell 15% quarter-on-quarter, from £199.2 million in Q1 to £173.1 million in Q2. The report suggests that geopolitical tensions, including the conflict involving Iran, may have led some borrowers to postpone transactions towards the end of Q1 and the start of Q2.
Trends in Bridging Finance Usage
Second charge bridging loans climbed from 9% in Q1 to 22% in Q2, reaching their highest level since Q1 2021. The report indicates that this reflects borrowers’ willingness to release equity while retaining existing mortgage arrangements. Demand for heavy refurbishment loans also increased, rising from 6% in Q1 to 10% in Q2. Funding for business injections more than doubled, from 4% to 9%.
Despite the increase in second charge loans, pricing remained largely stable, with the average monthly interest rate falling slightly from 0.82% in Q1 to 0.81% in Q2. Borrowers appeared to prioritise speed, as average completion times dropped from 53 days in Q1 to 46 days in Q2. The average loan term remained unchanged at 12 months.
Relevance for Letting Agents and Inventory Clerks
The report’s findings suggest that more property investors and homeowners are using bridging loans to move quickly in a slower market, renovate properties, or release equity. This trend may lead to increased activity in property refurbishments and lettings, areas directly relevant to letting agents and inventory clerks.
Source: Mortgage Solutions