"It’s no longer just about speed. It’s about flexibility, expertise, and working alongside brokers to structure deals that make sense."
Some might say bridging finance has always had a bit of an edge – a fast-moving, problem-solving, get-the-deal-done type of industry. Over the years, the sector has managed to maintain its dynamic, solutions-focused approach while developing a strong reputation for professionalism and customer focus.
Bridging in the UK has evolved from a niche, sometimes misunderstood part of the lending market into a vital funding option for property professionals. It has moved from the shadows of high fees and opaque terms to a sector that prides itself on transparency, customer service, and increasingly, self-regulation.
It’s no longer just about speed. It’s about flexibility, expertise, and working alongside brokers to structure deals that make sense. The bridging market is bigger, more competitive, and, crucially, better than ever.
The early days
Rewind to the late 1990s and early 2000s. Bridging was very much an alternative lending option when mainstream banks weren’t interested, and the market struggled with a reputation for high charges and low transparency.
Excessive fees, a lack of regulation, and the perception of being a last resort were common concerns. Some lenders didn’t help their cause, with complex pricing structures and steep penalties that made brokers and borrowers think twice. The distinction between regulated and unregulated bridging loans became key: if a borrower was financing their home, it was regulated. But for investors, developers, and landlords, bridging largely remained unregulated — and still does.
The difference today is that lenders now operate with a level of professionalism that rivals even the most traditional financial institutions.
The turning point
Fast-forward a couple of decades, and the bridging landscape looks very different. The market has matured, competition has increased, and lenders have stepped up to improve industry standards.
Bridging is no longer just a short-term fix for funding gaps. Lenders now offer development finance, refurbishment finance, auction funding, portfolio restructuring — all fine-tuned with investors in mind. Transparency has improved, pricing is fairer, and broker-lender relationships are stronger than ever. With more structured offerings and clearer communication, bridging has moved from the fringes of finance to a key player in the property market.
While much of bridging remains unregulated, the industry has taken matters into its own hands. Trade bodies such as the BDLA (formerly ASTL) have worked to enforce best practices, encouraging lenders to operate with the highest professional standards. The introduction of the Certified Practitioner in Specialist Property Finance (CPSP) qualification is another step forward, giving brokers and lenders a structured way to demonstrate expertise.
Bridging by numbers
If there’s any doubt about where bridging is heading, the numbers say it all. The total loan books of BDLA members reached a record high of £8.1 billion in Q1 2024. Bridging applications surged to £11.3 billion, up 17.5% from the previous quarter. Rightmove’s Q4 Commercial Tracker also showed a 28% year-on-year rise in demand for commercial property investment. More brokers are introducing bridging, more investors are using it, and the market is showing no signs of slowing down.
Raising the standard
The BDLA has played a huge role in shifting perceptions, and its membership rules and code of conduct mean borrowers and brokers can expect more from lenders than ever before. The BDLA has been actively pushing the market forward, encouraging more customers and brokers to engage with the sector. It has also collaborated with Interpath on the UK Bridging Market Survey and worked to improve reporting, fraud prevention, and engagement with policymakers.
What’s next?
Looking ahead, the industry isn’t just growing — it’s transforming. Technology and AI are streamlining underwriting and due diligence, making deals faster and more efficient. While bridging still remains largely unregulated, the increasing focus on professionalism could lead to more industry-wide oversight in the future. More brokers are engaging with the sector, realising that it’s not just a niche product but a powerful tool at their disposal.
For brokers, the message is simple — bridging has come of age. It’s a key financial tool that can unlock deals, widen client opportunities, and strengthen long-term relationships. More clients are looking at short-term funding solutions. The lenders are there, the products are there, and the market is thriving. The only question is — are you in?
