Bridging Loan News

The Bank of England's Monetary Policy Committee has voted to hold the base rate at 4.5% in its latest meeting. This decision provides continued stability for bridging loan lenders who typically price their products as a margin above base rate. Industry experts expect bridging rates to remain competitive as lenders continue to battle for market share.

Shawbrook Bank has announced a 0.15% reduction across their bridging loan range, effective immediately. The cuts apply to both regulated and unregulated bridging, with rates now starting from 0.49% per month. This move follows similar reductions from competitors and reflects increased competition in the specialist lending market.

The UK bridging loan market reached record volumes in 2025, with total completions exceeding £8 billion. The growth was driven by increased auction activity, chain break solutions, and growing demand for refurbishment finance. Analysts expect continued growth in 2026 as property investors seek alternatives to slow-moving traditional mortgages.

Specialist lender Together has launched a new heavy refurbishment bridging product designed for extensive property renovations. The new product offers up to 70% LTGDV (Loan to Gross Development Value), staged drawdowns, and flexible QS requirements. It's aimed at experienced developers undertaking structural works, extensions, and change of use projects.

The FCA has published new guidance for regulated bridging loan providers, emphasizing the need for clear communication about costs, exit strategies, and the consequences of default. The proposals require lenders to demonstrate they are acting in customers' best interests throughout the loan lifecycle, from application to redemption.

Glenhawk has announced an expansion of its lending criteria to include more Scottish properties, including those with non-standard tenure arrangements. The move comes as demand for bridging finance in Scotland continues to grow, particularly for auction purchases and refurbishment projects in Edinburgh and Glasgow.

Property auction activity increased by 20% in Q4 2025 compared to the same period last year, according to data from Essential Information Group. The rise in auction sales has driven corresponding demand for bridging finance, with lenders reporting increased applications from auction buyers requiring fast completion within 28-day deadlines.

MT Finance has announced completion of a £1.2 million bridging loan in just 5 working days, believed to be an industry record for loans of this size. The deal was for an auction purchase in London, with the borrower requiring urgent funds after a mortgage fell through. The lender used AVM valuation and dual representation to achieve the rapid completion.