The Intermediary – October 2025 - Flipbook - Page 48
SPECIALIST FINANCE
Opinion
The quiet engine
driving property
progress
I
n the quieter corners of the
property market, bridging
finance is starting to make
more noise. Long seen as a
last resort or a short-term
fix, it’s fast becoming one of
the most effective ways to get deals
done in an increasingly complex
lending landscape.
This isn’t about rescue finance any
more. Bridging has matured into a
mainstream tool for borrowers who
need flexibility, speed and certainty.
Whether it’s an investor, a landlord,
or a homeowner caught in a broken
chain, bridging can oen make the
difference between opportunity
and frustration.
The truth is, it’s not the product
that’s changed so much as the
perception. Intermediaries and
borrowers alike are realising that
bridging isn’t just a backup plan; it’s
a deliberate choice. It’s being used
strategically to fund refurbishments,
conversions and time-sensitive
purchases that simply don’t fit the
criteria of the high street.
That agility maers. It allows
borrowers to move decisively in
a market where delays can kill
opportunities. The best advisers know
that a bridging facility, properly
planned with a clear exit route,
can oen enhance a client’s overall
strategy rather than complicate it.
There’s also a growing wave of
clients who see property differently.
Investors are snapping up unloved
stock to renovate and reposition for
sale or let. Landlords are restructuring
portfolios to adapt to tax changes
and rising costs. Homeowners are
increasingly open to short-term
borrowing if it means securing the
home they want before their own sale
completes. All of these are scenarios
where bridging proves its worth – and
46
The Intermediary | October 2025
RICHARD DEACON
is managing director
at Octane Capital
where intermediaries can demonstrate
real value.
The industry itself has moved on
too. Bridging once carried an unfair
reputation for being opaque, but
that’s no longer the case. Lenders
have worked hard to increase
transparency around pricing and
process, while technology has
accelerated turnaround times. Digital
valuations, automated ID checks and
open banking integration are making
the journey smoother for both brokers
and clients.
Delivering deals
That evolution has also aracted a
wider range of intermediaries into
the space. Brokers who traditionally
focused on residential or buy-tolet (BTL) lending are beginning to
recognise the benefits of having
bridging in their toolkit. But success
here isn’t just about knowing rates
or loan-to-values (LTVs) – it’s about
understanding risk, timescales, and
exit strategy from the outset. A welleducated broker is oen the difference
between a deal that delivers and one
that dris.
Another area gaining traction is
sustainability. The Government’s
focus on improving energy efficiency
and revitalising existing housing
stock is opening up a new frontier for
bridging. Lenders are funding projects
to upgrade Energy Performance
Certificate (EPC) ratings, convert tired
commercial buildings into residential
spaces, or retrofit older homes. Some
are even beginning to offer incentives
for greener developments. It’s an area
ripe for innovation, where bridging
can play a role in improving the UK’s
property landscape.
The outlook for bridging remains
strong. Institutional capital is flowing
into the sector, which should continue
to support competitive pricing and
broaden lender appetite. Regulated
bridging is on the rise as homeowners
gradually become more aware of
what’s possible. And lenders are
increasingly designing smoother
pathways from short-term funding
into term products.
But as ever, success in this market
will depend on relationships. The best
results come when lenders, brokers,
solicitors and surveyors work in
genuine partnership, communicating
clearly and moving at pace. Bridging
isn’t a product that suits delay
or indecision – it rewards those
who are proactive, pragmatic and
collaborative.
For intermediaries, that means
geing closer to their lending partners
and to their clients’ ambitions. It
means asking the right questions
early, managing expectations
carefully, and structuring deals that
balance speed with sustainability.
Bridging is not about taking
unnecessary risk; it’s about creating
optionality where others see obstacles.
In many ways, bridging finance
reflects the broader property market
itself – adaptable, resilient and
quietly innovative. It fills the gaps that
mainstream lending leaves behind,
keeps transactions moving, and
fuels the projects that turn potential
into value.
For a market still grappling with
uncertainty, that’s no small thing.
Bridging gives borrowers and advisers
something precious: the ability to
act with confidence. And in today’s
environment, that ability is worth its
weight in gold. ●
