"In an industry where every case is unique, experienced underwriters ensure that lending decisions remain personal, flexible, and responsive to real-world challenges."
Technology is revolutionising the bridging market, improving efficiency and streamlining processes. However, when it comes to making lending decisions, human expertise remains invaluable, and recent years have reinforced the need for human insight, proving that technology alone cannot replace experienced underwriters.
Real-life expertise
Human underwriters outperform algorithms because they can assess the nuances of individual cases, something automation struggles with. This is particularly important in specialist finance and bridging, where no two applications are alike. While automation works well for standard mortgage lending, bridging finance requires a more tailored approach, taking into account the complexities of each project and borrower.
In an industry where every case is unique, experienced underwriters ensure that lending decisions remain personal, flexible, and responsive to real-world challenges.
Art, not science
Underwriters exist across the lending industry, but how much flexibility do they really have? The shift towards rigid, tick-box lending models is limiting the role of expert judgment, but many still believe that bespoke underwriting is crucial for responsible lending decisions, and skilled underwriters can make bold, subjective assessments based on individual circumstances.
A successful underwriting approach includes key elements such as:
• Highly trained professionals: A team with a deep understanding of lending criteria and risk assessment, combining experience with fresh perspectives to improve decision-making.
• Clear criteria and guidance: Confidence in lending principles, allowing underwriters to distinguish between areas of flexibility and firm boundaries.
• Decision-making authority: Trusting underwriters to make informed choices leads to better lending outcomes, even if automation appears more cost-effective.
• In-person meetings: Engaging directly with applicants provides deeper insight beyond financial statements. These interactions can highlight potential opportunities or raise red flags that an automated system might miss.
• Access to diverse funding streams: Multiple funding options allow underwriters to adapt applications to the most suitable product, providing greater flexibility and better solutions for customers.
Will tech eventually take over?
Technology continues to play a vital role in enhancing efficiency. Recent innovations, such as real-time ID verification and automated valuation models (AVMs), have improved operational processes. However, these tools are best used as enhancements rather than replacements for human expertise.
The goal is to create a balance - leveraging technology to streamline processes while ensuring that experienced professionals oversee lending decisions. Automated systems lack the ability to assess the full scope of a project’s potential profitability and pitfalls. Bridging finance requires trust not only in the figures but also in the people behind them.
Bridging in 2025 and beyond
The bridging sector continues to see strong demand, with investors and homebuyers seeking fast, flexible funding solutions. Looking ahead in 2025 and beyond, it is expected that bridging finance will continue to play a vital role in supporting the residential property development sector, particularly in light of the Government’s ambitious housing targets. Short-term funding options will be required to allow developers and property investors to acquire sites, refurbish properties and bring much-needed stock to the market. Bridging lenders that combine expert underwriting with tailored finance solutions will be key in helping make this happen.
Despite market value fluctuations, experienced investors continue to seek opportunities, potentially creating a counter-cyclical effect in bridging finance. At the same time, affordability challenges and economic uncertainty could test lenders’ underwriting policies as well as overall resilience.
But bridging finance remains a dynamic and competitive sector. Lenders and brokers are working harder than ever to provide effective solutions, and those who successfully navigate market challenges while offering tailored funding will emerge stronger, ready for long-term growth.
The future of underwriting
Underwriting is evolving, but the role of the expert underwriter remains crucial, and while technology is welcomed by the industry for better efficiency, lending decisions require human insight, flexibility, and the ability to see beyond data points.
The future of bridging finance will depend on lenders’ ability to combine smart technology with expert underwriting - ensuring that lending decisions are both well-informed and human-centred.
Ultimately, successful underwriting is about more than just numbers. It’s about understanding people, projects, assessing risks effectively, and making confident lending decisions that support both borrowers and the broader market.
