The value of new regulated bridging loans taken out by UK homeowners rose to £1.83bn in the year to 31 March 2026, according to research from Karis Capital.
Lending increased from £1.75bn in the previous 12 months, with the specialist real estate debt and insurance adviser attributing part of the rise to owner-occupiers seeking to avoid delays in property chains.
Some buyers are using short-term finance to complete a purchase while waiting for a suitable opportunity to sell their existing home. The bridging loan can then be repaid and replaced with a long-term mortgage once the sale is completed.
Bridging finance can allow borrowers to break a property chain when they are unable to sell their existing home before buying another. Loans are generally provided for periods ranging from a few weeks to 12 months and require a clear repayment strategy.
Francesco Amato, senior associate – specialist regulated finance at Karis Capital, says: “In a property market that is being slowed for the moment by fluctuating interest rates, bridging loans give some buyers a different route to get their property purchases completed.”
Regulated bridging loans may also be used to purchase inherited properties where beneficiaries want a quick sale, buy out a former partner’s interest in a home following a divorce, or acquire a property that is not eligible for a conventional mortgage because of damage or unfinished work.
The finance can also fund major renovations before the borrower refinances with a high street lender after the work is completed.
Amato says: “While a bridging loan won’t be suitable for everyone, it’s an option that allows buyers in some situations to move their purchases forward when a conventional mortgage isn’t suitable. With the right exit plan, they are an important tool for property buyers.”
The figures are based on Financial Conduct Authority data for regulated bridging loans.
