Released earlier today, Bridging Trends Q3 2026 provides a snapshot of the UK bridging sector. With borrowers continuing to face uncertainty, the latest data shows how they are adapting and evolving.
Transactions up as landlords return
After the market was hit by uncertainty in Q2 caused by the ongoing conflict in Iran, borrowers seem to be accepting the new status quo. Bridging Trends contributors transacted a total of £181.8 million in Q3 2026, a 5% increase on Q2’s £173.1 million. While this is 13.2% below the same time last year (£209.4 million), the uptick on Q2 shows that bridging remains a vital tool for those looking to unlock funds.
The increase in lending was driven by landlords and investors, with unregulated lending extending its market share from 52% in Q2 to 55% in Q3. There was also a jump in purchasing an investment property, which was the most popular use of a bridging loan and accounted for 23% of all transactions in Q3, up from 18% in Q2. As we would expect to see, first charges were also up in Q3 and accounted for 87% of transactions, compared to 78% in Q2.
As borrowers prioritised purchases, demand for equity release dwindled, with second charge bridging loans falling from 22% of transactions in Q2 to 13% in Q3. The drop in heavy refurb bridging loans – which fell from 10% in Q2 to 6% in Q3 as building costs remained high – will have contributed to this.
Despite this, there was still demand for development bridging, with Knowledge Bank reporting that it saw the biggest uplift among search terms made by brokers in Q3. It was followed by ‘defaults over £500’ and ‘properties purchased at auction’.
Interest rates fall as efficiency increases
As rising swap rates directly impacted fixed-term products, bridging loans saw a decrease in interest rates. The combination of competition among lenders and liquidity in the market resulted in the average monthly interest rate falling from 0.81% in Q2 to 0.77% in Q3. This saw the average loan-to-value (LTV) increase from 55% in Q2 to 59% in Q3 as applicants could afford to borrow more while keeping repayments manageable.
There was further good news for borrowers as the average completion time fell from 46 days in Q2 to 41 in Q3 as processes became increasingly streamlined and lenders worked to meet their clients’ deadlines. The average term remained at 12 months.
Speedy solutions from MT Finance
At MT Finance we have established ourselves as a lender that can move quickly without ever compromising on quality. Lending decisions are often made within hours of receiving an enquiry and cases can be completed within days. Further time can be saved with an AVM, which is offered on qualifying regulated and unregulated bridging finance applications, up to a maximum LTV of 65% and a maximum property value of £750,000.
If you would like to find out more about our regulated and unregulated bridging products then get in touch with our broker relationship managers. Fill in this form and the team will get back to you as soon as possible.
Bridging Trends combines bridging loan completions from several specialist finance packagers operating within the UK bridging market: Adapt Finance Group, Brightstar Financial, Brilliant Solutions, Capital B, Clever Lending, Clifton Private Finance, Complete FS, Enness, Impact Specialist Finance, LDN Finance, Optimum Elite and Sirius Finance. The data for top broker criteria searches is supplied by Knowledge Bank.
