Contributors to the Bridging Trends survey lent £181.8 million in bridging loans during the third quarter of 2026, up 5 percent from £173.1 million in the second quarter, as landlords and investors stepped up property purchases.
Buying an investment asset was the most popular use of bridging finance in the quarter, accounting for 23 percent of transactions against 18 percent in Q2. First-charge bridges jumped from 78 percent to 87 percent of lending, underlining a purchase-led market rather than equity withdrawal.
Speed is the draw. Brokers report completion delays through normal mortgage and conveyancing routes, and bridging gives landlords a way to secure stock, complete refurbs and refinance out later. With mainstream rates lifted by the Bank of England’s move to 4 percent this month, short-term finance has fresh appeal for buyers who cannot wait.
Investment buying leads the quarter
The Q3 total remains 13.2 percent below the £209.4 million recorded in the same quarter last year, so the market is recovering rather than booming. But the direction of travel is clear: purchase activity strengthened while heavy refurbishment lending fell from 10 percent to 6 percent of deals as building costs stayed high.
Second-charge bridges dropped from 22 percent to 13 percent of transactions, consistent with fewer borrowers raising extra funds against existing stock. Knowledge Bank data cited in the report showed development bridging searches picking up among brokers, pointing to site and conversion demand beneath the headline.
This follows Landlord Knowledge’s report on the Bank of England lifting the base rate to 4 percent, which added fresh pressure to mainstream borrowing costs. Bridging, priced for speed rather than term value, becomes relatively more attractive when term rates rise and sellers favour buyers who can move fast.
First-charge deals dominate
The swing to first-charge lending at 87 percent shows borrowers taking finance against purchases free of existing charges, the classic auction, chain-break and quick-completion playbook. Unregulated bridging edged back up to 55 percent of deals from 52 percent in Q2, having fallen from 59 percent in Q1, a pattern consistent with more investment-purpose borrowing.
Landlords weighing this route should price the exit first. Refinancing out depends on term lenders’ valuations and rental cover tests, both of which have tightened as rates rose. The full survey data and methodology are published on the Bridging Trends research site.
What this means for landlords
- If you are buying at auction or in a chain: a first-charge bridge can secure the asset, but get a term offer agreed in principle before you bid
- Watch for: rental cover tests on the exit – a purchase that works on bridge pricing must still clear a 4 percent-plus term rate
- Refurb budgets need padding: heavy refurb deals fell as costs stayed high, so fix build prices where you can
- Second-charge demand has cooled: if you only need equity, compare further advances and second-charge term products first
- Bottom line: bridging is funding purchases again, not distress – use it for speed with a tested exit, not as a substitute for term finance
Editor’s view
The purchase share jumping to nearly a quarter of deals is the telling number. Landlords are not borrowing to survive; they are borrowing to move faster than slow chains allow. That works only when the refinance maths is done before completion, not after.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 10 November 2026
Sources: Bridging Trends, MT Finance, Knowledge Bank
Related reading: Bank of England lifts base rate to 4% in 8-1 vote
