Bridging Trends shows Q3 lending rise as confidence ‘creeping back’ and landlords make use of market liquidity

A total of £181.8m was lent by Bridging Trends contributors in Q3, a 5% rise from the £173.1m in Q2.

The data comes from the latest Bridging Trends report for Q3 2026.

However, while quarterly lending may have increased, the last three months still saw a 13.2% decrease from the £209.4m recorded the same time last year.

According to the report from MT Finance, the most popular use of a bridging loan was for the purchase of an investment property at 23%, up from 18% in the previous quarter. The report stated that landlords had taken advantage of liquidity in the market in Q3.

The second most common purpose for the loan was for a chain break (16%), followed by auction purchase (13%).

The proportion of unregulated bridging loans was 55%, up from 52% in Q2, with the report stating that the rise came as landlords and investors adjusted to the latest set of economic fluctuations.

First-charge bridges increased from 78% in Q2 to 87% in Q3, while second-charge bridges fell from 22% to 13% over the same period.

Heavy refurb bridges also saw a quarterly decline, falling from 10% to 6% due to high level of building costs. Despite this, Knowledge Bank recorded development bridging as having the biggest uplift in search terms by brokers for Q3, followed by ‘defaults over £500’ and ‘properties purchased at auction’.

Average monthly interest rate fell to 0.77% from 0.81% in Q2, which Bridging Trends said highlighted market liquidity and pointed to competitive conditions for lenders. The average LTV increased from Q2’s 56% to 59%.

The report said an increasing number of borrowers were seemingly adapting to the “new normal” amid continuing global uncertainty.

Jordan McBriar, CEO at Adapt Finance Group, commented: “‘These trends are so typical of the market currently, almost one positive to every negative but the fact remains that bridging is the perfect tool for making transactions happen.

“It feels as if confidence is creeping back in and there is a want to make things work, albeit with some challenges.

“Looking at last year’s numbers, especially in terms of quantum, it is a pleasant surprise to see there isn’t the fall off that many people may have expected to see.

“It is tough out there, but it is also making people focus on delivery, which can only be a good thing for when market conditions improve.”

Fergus Allen, head of bridging at Clifton Private Finance, added: “The bridging market appears to be moving towards more investment-led, first-charge lending, with borrowers benefiting from increasingly competitive rates and higher leverage.

“At the same time, lenders appear to be completing transactions more quickly. Whether this is due to sustainable market growth or increased competition between lenders is up for debate – my opinion is it’s most likely the latter.”

Raphael Benggio, bridging director at MT Finance, also said: “It is really encouraging to see the drop in both completion times and interest rates.

“This shows that despite the geopolitical landscape, lenders are continuing to support borrowers which helps to drive much-needed momentum. The industry is once again showing its resilience as well as its ability to find solutions and get deals over the line.”