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Category: Bridging

  • Recognise Reports 51% Lending Increase in Mortgage Market

    Recognise Reports 51% Lending Increase in Mortgage Market

    Recognise has announced a significant 51% rise in gross lending, with its bridging loan balances more than doubling, reflecting a robust growth strategy in the mortgage market. This surge is particularly relevant for landlords and investors seeking opportunities in a competitive lending environment.

    TL;DR: Recognise’s gross lending has surged 51%, with bridging loan balances increasing from £124m to £303.8m; this growth may benefit landlords and property investors looking for financing options.

    What are the key financial figures?

    Recognise’s loan book has surpassed £500 million, with bridging loans now constituting two-thirds of the total book. The bridging loan balances rose dramatically to £303.8 million, while professional buy-to-let lending remained stable at £88.4 million, showing only a slight increase from the previous year. Commercial lending, however, declined from £58.8 million to £49.5 million in 2026.

    How does this impact the mortgage market?

    The substantial increase in bridging loans indicates a growing demand for short-term financing solutions among property investors. With London remaining the largest market for Recognise, rising from £88.3 million to £153.2 million, the South East and North West also saw notable increases. This trend suggests that investors may find more accessible funding options in these regions, which could stimulate further property transactions.

    What does this mean for landlords and property investors?

    For landlords and property investors, Recognise’s growth in bridging finance is a positive sign. The lender’s plans to introduce regulated bridging in FY27 could provide even more opportunities for those seeking flexible financing options. Furthermore, with a reported profit after tax of £8.9 million, compared to a loss of £5.3 million the previous year, Recognise appears to be stabilizing and expanding its offerings, which may lead to more competitive rates and terms in the mortgage market.

    Frequently asked questions

    What are bridging loans and how do they work?

    Bridging loans are short-term loans used to bridge the gap between the purchase of a new property and the sale of an existing one. They are typically used by property investors to secure financing quickly.

    How can I benefit from Recognise’s lending growth?

    If you are a landlord or investor, Recognise’s increased lending capacity may provide you with more options for financing your property purchases or renovations, especially in high-demand areas.

  • Bridging Finance Offers Reach £520m in Q2 2026

    Bridging Finance Offers Reach £520m in Q2 2026

    The latest data from Brickflow reveals a significant £520 million in property finance offers during the second quarter of 2026. This surge highlights the ongoing demand for bridging finance, particularly as the property market adapts to changing economic conditions.

    TL;DR: Brickflow reported £520 million in property finance offers in Q2 2026; development finance searches fell by 8.3%, indicating a shift in market focus.

    What Types of Bridging Finance Were Offered?

    During the second quarter, development finance made up 61% of the total searches on Brickflow’s platform, amounting to over £8 billion. Specifically, development finance offers totalled £236.5 million, while bridging finance offers reached £258.9 million. Commercial mortgage offers were lower at £24.6 million. This distribution underscores the preference for development finance among investors and developers.

    How Have Bridging Finance Search Trends Changed?

    Despite the overall increase in finance offers, searches for bridging finance fell by 13.6%, and commercial mortgage searches decreased by 22.1%. Development finance searches also saw an 8.3% decline. However, there was a notable increase in requests for decisions in principle, with bridging finance requests rising by 6% and commercial mortgage requests up by 12%. This indicates that while searches may be down, there is still a strong interest in securing finance.

    What Does This Mean for Borrowers and Investors?

    For landlords, borrowers, and investors, the decline in search activity could signal a cooling off in the market. However, the rise in requests for decisions in principle suggests that those who are actively seeking finance are more serious about their applications. The increase in bridging lenders willing to finance land with detailed planning permission—up 61% since the last quarter of 2025—also provides more opportunities for developers looking to secure funding.

    Frequently asked questions

    What is bridging finance?

    Bridging finance is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one. It is often used in property transactions to secure quick funding.

    How can I apply for bridging finance?

    To apply for bridging finance, you can approach lenders directly or use a specialist finance platform like Brickflow to compare offers and find suitable options based on your needs. For more information, check our bridging finance guide.

  • Bluecroft Finance Introduces Dual Representation for Bridging Loans

    Bluecroft Finance Introduces Dual Representation for Bridging Loans

    Bluecroft Finance has launched a new initiative called Dual Representation aimed at enhancing the bridging loan process for brokers and direct clients. This development is significant as it seeks to streamline legal procedures, ultimately making transactions faster and more efficient.

    TL;DR: Bluecroft Finance’s Dual Representation initiative simplifies the bridging loan process; it benefits brokers and clients by reducing legal complexities and improving transaction speed.

    What is Dual Representation?

    Dual Representation is a collaborative approach where Bluecroft Finance partners with multiple legal firms to manage bridging loan transactions. This initiative aims to simplify the legal journey for brokers and clients, resulting in fewer complications and quicker completions on suitable cases. By expanding its panel of legal partners, Bluecroft can accommodate various case types and client preferences, thereby enhancing overall service delivery.

    How Does This Impact Brokers and Clients?

    For brokers, the introduction of Dual Representation means a more straightforward legal process, allowing them to manage transactions with greater ease. The initiative reduces the number of moving parts involved, thus accelerating the completion of deals. For direct clients, this approach can lead to lower legal costs and improved visibility throughout the transaction, which can be particularly beneficial during complex cases.

    What This Means for Bridging Loan Users

    The Dual Representation initiative is a positive development for anyone involved in bridging loans. By reducing friction in the legal process, it enhances the overall experience for both brokers and clients. The ability to work with a broader range of legal partners allows Bluecroft Finance to respond more effectively to the needs of borrowers, ultimately facilitating smoother transactions and quicker access to funds.

    Frequently asked questions

    What are the benefits of Dual Representation for borrowers?

    Borrowers can expect reduced legal complexities, improved communication, and potentially lower costs, leading to a more efficient transaction process.

    How does Dual Representation affect the speed of bridging loans?

    By simplifying the legal journey and reducing the number of parties involved, Dual Representation can significantly speed up the completion of bridging loan transactions.

  • Hope Capital Expands Bridging Criteria in Mortgage Market

    Hope Capital Expands Bridging Criteria in Mortgage Market

    Hope Capital Property Finance has broadened its bridging loan criteria, making it easier for borrowers to access funds. This expansion is significant for landlords, investors, and brokers as it enhances flexibility and affordability in the current mortgage market.

    TL;DR: Hope Capital now allows lending on below-market-value transactions up to 75% of open market value; the minimum loan size has been reduced from £100,000 to £50,000, benefiting a wider range of borrowers.

    What are the new criteria changes?

    The lender has introduced several key changes to its bridging loan offerings. Notably, it has increased the lending limit on below-market-value transactions to 75% of the open market value, contingent on a full valuation. Additionally, the instant valuation threshold has been raised from £500,000 to £1 million for qualifying residential cases, which is expected to expedite completion times.

    How do these changes affect borrowers?

    With the reduction of the minimum loan size from £100,000 to £50,000, more borrowers can now access bridging finance, especially those looking to invest in smaller properties or undertake refurbishment projects. The enhanced offerings include loans ranging from £50,000 to £5 million across England, Wales, and Scotland, with terms available from three to 18 months.

    What does this mean for brokers?

    Brokers can now offer a more competitive range of products to their clients, particularly in the specialist property market. The dual legal representation threshold has also increased from £750,000 to £1 million, allowing brokers to facilitate larger transactions without the need for separate legal representation, thereby simplifying the process.

    What this means for the mortgage market

    The adjustments made by Hope Capital reflect an ongoing trend in the mortgage market towards greater accessibility and flexibility. By catering to a broader spectrum of borrowers and reducing costs associated with bridging loans, lenders are positioning themselves to meet the evolving needs of the property market. This could lead to increased activity in the sector as more investors and landlords take advantage of these favourable conditions.

    Frequently asked questions

    What types of properties can benefit from these new criteria?

    Residential properties, including those requiring light, medium, or heavy refurbishment, are eligible under the new criteria.

    How can I apply for a bridging loan with Hope Capital?

    Interested borrowers should contact a broker or directly reach out to Hope Capital to discuss their specific needs and the application process.

  • Hope Capital Cuts Minimum Bridging Loan to £50,000

    Hope Capital Cuts Minimum Bridging Loan to £50,000

    Hope Capital has announced a significant reduction in its minimum bridging loan amount, lowering it from £100,000 to £50,000. This change aims to enhance accessibility for borrowers and brokers, particularly in the specialist property market.

    TL;DR: Hope Capital now offers bridging loans starting at £50,000, expanding options for borrowers and brokers; the lender also raises the limit for dual legal representation to £1 million.

    What Changes Have Been Made to Bridging Loans?

    In addition to lowering the minimum loan amount, Hope Capital has made several key adjustments to its bridging loan offerings. The lender will now consider below-market-value transactions at up to 75% of the open market value, contingent on a full valuation. Instant valuations are now available for qualifying residential cases valued up to £1 million, an increase from the previous limit of £500,000. Furthermore, the threshold for dual legal representation has been raised from £750,000 to £1 million, and this facility is now available in Scotland.

    How Do the New Rates Affect Borrowers?

    Hope Capital has also revised its pricing structure for residential loans. The rates for light, medium, and heavy refurbishment cases have decreased from 0.85% to 0.82% at a 75% loan-to-value ratio. Additionally, the rates for Max Net residential deals at the same loan-to-value ratio have dropped from 0.89% to 0.87%. For semi-commercial properties, the Max Net pricing at 70% loan-to-value has been reduced from 0.99% to 0.89%, while the equivalent Max Net commercial rate has fallen from 0.99% to 0.92%.

    What This Means for Landlords and Investors

    The changes implemented by Hope Capital are particularly beneficial for landlords and property investors. With the minimum loan amount now set at £50,000, more investors can access bridging finance for smaller projects or property acquisitions. The increased valuation limits and reduced rates further enhance the attractiveness of these loans, allowing for greater flexibility in financing property ventures. This is a positive development for those looking to invest in the property market, as it opens up new opportunities for funding.

    Frequently Asked Questions

    What types of properties can I finance with a bridging loan?

    Bridging loans can be used for various property types, including residential, semi-commercial, and commercial properties. Hope Capital’s recent updates allow for funding on below-market-value transactions as well.

    How long can I take out a bridging loan for?

    Hope Capital offers bridging loans with terms ranging from three to 18 months, providing flexibility for borrowers to complete their projects or transactions.

  • Hope Capital Lowers Minimum Bridging Loan to £50,000

    Hope Capital Lowers Minimum Bridging Loan to £50,000

    Hope Capital has announced a significant reduction in its minimum bridging loan amount, now set at £50,000, down from £100,000. This change is particularly relevant for landlords, investors, and brokers, as it opens up more opportunities for smaller-scale property transactions and renovations.

    TL;DR: Hope Capital has reduced its minimum bridging loan to £50,000; this change allows more borrowers to access financing for property purchases and renovations.

    What Changes Have Been Made to Bridging Loans?

    The revised lending criteria at Hope Capital now accommodates loans ranging from £50,000 to £5 million across England, Wales, and Scotland. The lender will consider below-market-value transactions at up to 75% of the open market value, contingent on a full valuation. Additionally, the threshold for dual legal representation has increased from £750,000 to £1 million, making it easier for borrowers to navigate the legal aspects of their transactions.

    How Do Instant Valuations Work?

    Hope Capital has enhanced its valuation process by offering instant valuations for qualifying residential cases valued up to £1 million, an increase from the previous limit of £500,000. This improvement is designed to streamline the borrowing process, allowing brokers and borrowers to make quicker decisions.

    What Does This Mean for Borrowers and Brokers?

    The reduction in the minimum loan amount and the enhancements to the valuation process are likely to benefit a wide range of borrowers, including those looking to finance smaller property projects or renovations. For brokers, these changes provide more options to present to clients, particularly those who may have previously found the £100,000 minimum prohibitive. Hope Capital’s pricing for residential loans has also been adjusted, with rates for light, medium, and heavy refurbishment cases now starting at 0.82% at 75% loan-to-value, down from 0.85%.

    What Should Investors Watch Next?

    Investors and property professionals should keep an eye on further developments from Hope Capital, especially regarding their Max Net pricing, which has also seen reductions. The rate for Max Net residential deals at 75% loan-to-value has decreased from 0.89% to 0.87%, while semi-commercial pricing has dropped from 0.99% to 0.89%. These adjustments may signal a more competitive environment in the bridging loan market, potentially benefiting borrowers looking for flexible financing solutions.

    Frequently asked questions

    What is a bridging loan?

    A bridging loan is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one, often used in property transactions and renovations.

    Who can benefit from the new minimum loan amount?

    Landlords, property investors, and brokers can benefit from the new minimum loan amount of £50,000, as it allows access to financing for smaller property projects that were previously unfeasible.

  • Hope Capital Reduces Minimum Bridging Loan to £50,000

    Hope Capital Reduces Minimum Bridging Loan to £50,000

    Hope Capital has announced a significant change to its bridging loan offerings by lowering the minimum loan amount from £100,000 to £50,000. This adjustment is particularly relevant for borrowers seeking flexible financing solutions in the property market, allowing a broader range of transactions to be financed.

    TL;DR: Hope Capital has cut its minimum bridging loan amount to £50,000; this change benefits borrowers and brokers by increasing accessibility to bridging finance.

    What Changes Have Been Made to Bridging Loans?

    In addition to reducing the minimum loan amount, Hope Capital has introduced several enhancements to its bridging loan criteria. The lender will now consider below-market-value transactions at up to 75% of the open market value, contingent on a full valuation. Instant valuations are available for qualifying residential properties valued up to £1 million, a significant increase from the previous limit of £500,000. Furthermore, the threshold for dual legal representation has also risen from £750,000 to £1 million, expanding the facility’s availability to Scotland.

    How Do the New Rates Impact Borrowers?

    Hope Capital has also revised its pricing structure for residential loans. The rates for various refurbishment cases have decreased from 0.85% to 0.82% at a 75% loan-to-value ratio. Additionally, the Max Net residential deal rates have dropped from 0.89% to 0.87%, while Max Net semi-commercial pricing at a 70% loan-to-value has fallen from 0.99% to 0.89%. The commercial rate has also seen a reduction, decreasing from 0.99% to 0.92%. These competitive rates reflect the lender’s commitment to providing affordable financing options for borrowers.

    What This Means for Landlords and Investors

    The changes implemented by Hope Capital are likely to have a positive impact on landlords and property investors. With the minimum loan amount now set at £50,000, more investors can access bridging loans for various property transactions, including refurbishment projects. The ability to finance up to 100% of build costs, along with no upfront legal fees and no exit fees, enhances the attractiveness of bridging finance for those looking to secure quick funding for property investments.

    Frequently asked questions

    What types of properties can benefit from the new bridging loan criteria?

    The new criteria allow for below-market-value transactions and cover a wide range of properties, including residential, semi-commercial, and commercial properties, making it easier for various investors to access funding.

    How long are the terms for the new bridging loans?

    The revised bridging loans are available for terms ranging from three to 18 months, providing borrowers with flexibility in managing their financing needs.

  • TAB Urges Planning Reform to Enhance Bridging Finance

    TAB Urges Planning Reform to Enhance Bridging Finance

    The commercial mortgage and bridging finance sector is calling for significant planning reforms and support for landlords in the wake of ongoing challenges in the UK property market. TAB, a specialist finance lender, has highlighted that current planning delays and tax policies are hindering investment in commercial and mixed-use properties, which could otherwise stimulate housing supply and regeneration.

    TL;DR: TAB emphasizes the need for immediate planning reforms to expedite property development; this affects landlords and investors by potentially unlocking faster project approvals and increased housing supply.

    What Planning Reforms Are Needed for Bridging Finance?

    Karen Rodrigues, sales director at TAB, has outlined a vision for the next Prime Minister to prioritize planning reform. She stresses the necessity of a refreshed planning system that includes statutory deadlines and better resourcing for local authorities. Rodrigues advocates for a presumption in favor of converting redundant commercial spaces, which would streamline the approval process for change-of-use applications. This reform is essential for transforming vacant retail and office units into viable mixed-use developments.

    How Do Current Policies Affect Landlords in Bridging Finance?

    Rodrigues argues that the private rented sector (PRS) plays a vital role in addressing housing demand. She points out that landlords have been treated as mere sources of tax revenue by successive governments, which has created a challenging environment for property investment. TAB is calling for the reinstatement of mortgage interest tax relief for individual landlords, the removal of the stamp duty surcharge, and the reintroduction of the Wear and Tear Allowance. These changes would alleviate some of the financial burdens on landlords, enabling them to contribute more effectively to housing supply.

    What Changes Are Suggested for Business Rates Affecting Bridging Finance?

    In addition to planning reforms, TAB is advocating for a re-evaluation of business rates. Rodrigues believes that reducing costs for independent retailers and hospitality businesses would support high streets and the tenants of semi-commercial properties. She emphasizes that current business rates are a significant obstacle to revitalizing high streets and mixed-use investments. By implementing policies that lower rates for local service providers, the government could support a more conducive environment for local businesses, ultimately benefiting landlords and investors alike.

    What This Means for Landlords and Investors in Bridging Finance

    The proposed reforms could have a transformative impact on landlords and property investors. Streamlined planning processes would allow for quicker project approvals, making it easier for investors to capitalize on opportunities in the commercial and mixed-use property markets. Furthermore, if tax reliefs and incentives are reinstated, landlords may find it more financially viable to maintain and expand their portfolios. As the government considers these recommendations, stakeholders in the property market should remain vigilant and advocate for changes that support growth and investment.

    Frequently asked questions

    What are the key benefits of planning reform for property investors?

    Planning reform would facilitate faster approvals for development projects, allowing investors to move quickly on opportunities and potentially increasing housing supply in response to demand.

    How could changes to tax policies impact landlords?

    Reinstating tax reliefs and removing burdensome taxes like the stamp duty surcharge would reduce financial pressures on landlords, enabling them to invest more in their properties and contribute to the housing market.

  • TAB Urges Planning Reform to Enhance Bridging Finance Sector

    TAB Urges Planning Reform to Enhance Bridging Finance Sector

    The commercial mortgage and bridging finance sector is calling for urgent planning reforms and support for landlords from the next Prime Minister. TAB, a specialist finance lender, argues that current planning delays and restrictive tax policies are hindering investment in commercial and mixed-use properties, ultimately affecting housing supply.

    TL;DR: TAB highlights the need for planning reform to expedite development approvals; this impacts landlords, investors, and the housing market by limiting regeneration efforts.

    What Planning Reforms Are Needed for Bridging Finance?

    Karen Rodrigues, sales director at TAB, stresses the importance of a refreshed planning system with statutory deadlines and enhanced local authority resources. She advocates for a presumption in favour of converting redundant commercial spaces into residential units, which would streamline the approval process for change-of-use applications. Rodrigues points out that while TAB is ready to provide commercial mortgages quickly, the sluggish planning system hampers timely project execution.

    How Do Current Tax Policies Affect Landlords and Bridging Finance?

    According to TAB, the private rented sector (PRS) plays a vital role in addressing housing demand, especially as social housing supply remains insufficient. Rodrigues criticises successive governments for treating private landlords primarily as a source of tax revenue, rather than as partners in addressing housing shortages. She calls for the reinstatement of mortgage interest tax relief for individual landlords, the removal of the stamp duty surcharge, and the reintroduction of the Wear and Tear Allowance. These changes would alleviate financial pressures on landlords and encourage further investment in the housing market.

    What This Means for Landlords and Property Investors in Bridging Finance

    For landlords and property investors, the proposed reforms could significantly alter the investment market. By streamlining the planning process and reducing tax burdens, the government could incentivise more investment in both residential and mixed-use properties. This would not only facilitate faster project approvals but also potentially lead to a more vibrant rental market, as landlords would be better positioned to meet demand. Additionally, reforms in business rates could lower costs for independent retailers and hospitality businesses, further supporting high streets and mixed-use developments.

    What Changes Are Being Suggested for Business Rates?

    Rodrigues also highlights the need for reforming business rates, which she claims are a significant obstacle for high streets and mixed-use investments. Lowering rates for independent retailers and hospitality businesses could help rejuvenate local economies and support tenants in semi-commercial properties. By creating a more favourable business environment, the next Prime Minister could support conditions that allow local businesses to thrive, ultimately benefiting the property market.

    Frequently asked questions

    What is bridging finance?

    Bridging finance is a short-term loan used to bridge the gap between immediate funding needs and longer-term financing solutions. It is often used in property transactions.

    How can planning reforms impact the property market?

    Planning reforms can expedite the approval process for development projects, making it easier for investors to convert properties and increasing the overall housing supply.

  • Planning Reform and Landlord Support: Key Issues for Bridging Finance

    Planning Reform and Landlord Support: Key Issues for Bridging Finance

    The commercial mortgage and bridging finance sector is calling for significant planning reforms and support for landlords from the next UK Prime Minister. As the housing supply crisis continues, industry leaders argue that practical changes are essential to stimulate development and support property investors.

    TL;DR: The next Prime Minister must implement planning reforms to expedite housing development; landlords are urged to receive support to meet growing housing demand.

    What Planning Reforms Are Needed?

    Industry experts highlight that the current planning system is a major barrier to development. Karen Rodrigues, sales director at TAB, emphasises the need for a refreshed planning framework that includes statutory deadlines and enhanced local authority resources. These changes would facilitate quicker approvals for change-of-use applications, enabling the conversion of vacant commercial properties into mixed-use developments. This is particularly important as the demand for housing continues to rise, and the existing planning processes are seen as cumbersome and slow.

    How Will This Impact Landlords?

    Landlords are facing increasing pressure to meet housing demand, especially as social housing supply remains insufficient. Rodrigues argues that the private rented sector (PRS) plays a vital role in bridging this gap. However, she points out that successive governments have often viewed landlords primarily as a source of tax revenue rather than as essential contributors to housing supply. The proposed reforms include reinstating mortgage interest tax relief for individual landlords, scrapping the stamp duty surcharge, and bringing back the Wear and Tear Allowance. These measures would alleviate some of the financial burdens on landlords and encourage further investment in rental properties.

    What Are the Proposed Changes to Business Rates?

    In addition to planning reforms, there are calls for changes to business rates, which are seen as a significant obstacle for independent retailers and hospitality businesses. Lowering business rates could support high streets and tenants occupying semi-commercial properties. Rodrigues suggests that reducing rates for local service providers would help rejuvenate struggling high streets and stimulate economic activity in these areas.

    What This Means for Bridging Finance

    For those involved in bridging finance, the proposed reforms could lead to increased lending opportunities as the market responds to a more streamlined planning process. With quicker approvals for developments, investors may find it easier to secure funding for projects that contribute to housing supply. The current friction in the property market, exacerbated by high stamp duty rates, could also be alleviated, making transactions more viable for property investors and landlords alike. This shift could ultimately enhance the overall health of the property market and encourage more active participation from investors.

    Frequently Asked Questions

    What specific reforms are being requested for planning?

    Experts are calling for a refreshed planning system with statutory deadlines, more resources for local authorities, and a presumption in favour of converting redundant commercial spaces into residential units.

    How will changes to business rates affect landlords?

    Lower business rates could reduce costs for independent retailers and hospitality businesses, supporting tenants in semi-commercial properties and potentially boosting foot traffic and economic activity in high streets.