blog mortgage118

Tag: Lending Trends

  • Commercial Mortgage Advances Rise by 3% in Q3 2026

    Commercial Mortgage Advances Rise by 3% in Q3 2026

    Commercial mortgage advances have seen a notable increase in the third quarter of 2026, marking a 3% rise from the previous quarter. This growth indicates a strengthening market for semi-commercial mortgages, which is significant for landlords and investors looking to finance mixed-use properties.

    TL;DR: Semi-commercial mortgage advances rose by 3% in Q3 2026, reflecting a growing market with an annual lending rate of £1bn; landlords and investors should monitor lender activity and pricing trends.

    What is Driving the Increase in Commercial Mortgage Advances?

    According to Tab’s Mixed-Use Mortgage Monitor, the semi-commercial mortgage sector has experienced substantial growth, with lending values increasing by 36% since the first quarter of 2025. The market is now lending at an annualised rate of £1 billion. The increase in Q3 was attributed to a surge in lender activity during the spring months, with the number of active semi-commercial term lenders rising from 25 to 30. This influx included two new lenders entering the market, which has positively impacted competition and options for borrowers.

    How Have Lending Trends Changed?

    Despite the overall increase in advances, the pace of growth has slightly slowed, with year-on-year lending growth dropping from 20% in Q2 to 14% in Q3. Average loan sizes have also decreased by 1%, now standing at £510,000. However, this decline is somewhat offset by an increased appetite for larger loans in other areas of the market. The average semi-commercial mortgage rate has risen by 10 basis points, highlighting a divergence from the Bank of England’s base rate, which has remained stable at 3.75% throughout Q3.

    What This Means for Landlords and Investors

    The increased availability of semi-commercial mortgages is beneficial for landlords and investors, particularly those looking to finance mixed-use properties. The entry of new lenders, especially those transitioning from bridging finance to longer-term semi-commercial lending, suggests a more competitive environment. This could lead to better rates and terms for borrowers. However, the upward repricing of specialist lenders in response to rising swap rates may affect future borrowing costs, making it essential for landlords to stay informed about market trends and lender offerings.

    What Should Borrowers Watch Next?

    Looking ahead, borrowers should monitor the potential for further lender entries into the market, which could enhance competition and lead to more favourable lending conditions. Additionally, as specialist lenders may adjust their pricing in light of recent swap rate increases, it is advisable for borrowers to be proactive in seeking the best mortgage terms. Understanding the timing of product uptake—typically taking 8-12 weeks from application to completion—will also be important for those looking to secure financing in the coming months.

    Frequently Asked Questions

    What are semi-commercial mortgages?

    Semi-commercial mortgages are loans that finance properties with both residential and commercial elements, such as a shop with flats above. They cater to landlords and investors looking to diversify their portfolios.

    How can I find the best commercial mortgage rates?

    To find the best commercial mortgage rates, compare offers from various lenders, consider working with a mortgage broker, and stay updated on market trends and lender activity.

  • Understanding Age Myths in the Mortgage Market

    Understanding Age Myths in the Mortgage Market

    Recent insights reveal that many older borrowers are misinformed about age restrictions in the mortgage market, with two-thirds of brokers noting that these misconceptions persist. This is significant as enquiries from borrowers over 55 have been on the rise, indicating a shift in the demographic seeking mortgages.

    TL;DR: Over 64% of brokers report that older borrowers incorrectly believe lenders impose age restrictions; this affects the growing number of over-55s looking for mortgage options.

    Why Do Older Borrowers Think Age is a Barrier in the Mortgage Market?

    According to a study by Suffolk Building Society, 64% of mortgage brokers believe that older borrowers still assume that age restrictions are a standard practice among lenders. This perception may stem from outdated information or a lack of awareness regarding current lending practices. The reality is that many lenders are adapting their policies to accommodate older borrowers, allowing for more flexibility in mortgage terms.

    What Are the Trends in Later Life Borrowing?

    The research indicates that 60% of brokers have seen an increase in enquiries from later life borrowers in the past year. This suggests a growing acceptance of borrowing later in life, with half of the applications at Suffolk Building Society now coming from individuals aged over 55. The reasons for seeking mortgages vary widely, including remortgaging, funding home improvements, or assisting family members with deposits.

    What This Means for Older Borrowers in the Mortgage Market

    For older borrowers, these findings highlight the importance of seeking professional advice and challenging outdated assumptions. Many are unaware that options beyond equity release exist, with 57% of brokers reporting that clients believe equity release is their only choice. Furthermore, 54% of brokers noted that older clients often do not realise that pensions and investments can be leveraged to demonstrate affordability, which could open up more opportunities for securing a mortgage.

    What Should Brokers Do?

    Brokers play an important role in educating older clients about their options. With 66% of brokers noting that clients often reach the end of their mortgage term without a plan, it is essential for brokers to proactively address these concerns. By providing clear information and guidance, brokers can help clients navigate the mortgage market more effectively, ensuring they are aware of the possibilities available to them.

    Frequently asked questions

    Are there age restrictions for mortgages?

    No, many lenders do not impose strict age restrictions, and older borrowers can often secure mortgages without issues.

    What are common reasons older borrowers seek mortgages?

    Older borrowers often seek mortgages for remortgaging, home improvements, or to assist family members financially, such as providing a gifted deposit.

  • UK Mortgage Market Sees Significant Surge in Q2 2026

    UK Mortgage Market Sees Significant Surge in Q2 2026

    The UK mortgage market has shown a remarkable increase in activity, with gross mortgage advances rising sharply in the second quarter of 2026. This growth reflects a strong recovery in lending, as figures indicate a substantial year-on-year increase, demonstrating heightened confidence among borrowers and lenders.

    TL;DR: Gross mortgage advances in the UK have risen sharply in Q2 2026, indicating a recovering market that impacts borrowers and lenders alike.

    What are the latest trends in the mortgage market?

    According to the Financial Conduct Authority (FCA), the outstanding value of residential mortgage loans has also seen an increase from the previous quarter. This trend highlights the ongoing demand for mortgage products and the willingness of lenders to provide credit. Additionally, new mortgage commitments, which represent loans agreed but not yet advanced, have also risen, suggesting sustained interest from potential borrowers.

    How does this affect borrowers and investors in the mortgage market?

    The increase in mortgage lending is a positive sign for both borrowers and investors. For borrowers, the rise in new commitments suggests that lenders are extending credit, which may lead to more competitive mortgage offerings. Investors should note that a thriving mortgage market can enhance property values, making it an opportune time to consider investments.

    What should brokers and lenders watch for in the mortgage market?

    Brokers and lenders should monitor the evolving market dynamics as the FCA continues to publish quarterly data. Understanding the trends in mortgage advances and commitments can help them tailor their offerings to meet the demands of a growing customer base. Additionally, assessing the proportion of loans above the Bank of England base rate is important for managing risk and pricing strategies.

    Frequently asked questions

    What are gross mortgage advances?

    Gross mortgage advances refer to the total value of new mortgage loans that lenders provide to borrowers within a specific period.

    Why is the increase in mortgage commitments important?

    An increase in mortgage commitments indicates higher demand for loans, reflecting borrower confidence and potentially leading to more competitive lending rates.

  • Bridging Lending Falls 15%: Impact on the Mortgage Market

    Bridging Lending Falls 15%: Impact on the Mortgage Market

    Bridging lending in the UK has seen a significant decline, dropping by 15% in the second quarter of 2026 to £173.1 million. This marks a decrease from £199.2 million in the first quarter and reflects broader trends in the mortgage market that could impact borrowers, landlords, and investors alike.

    TL;DR: Bridging lending fell to £173.1 million in Q2 2026, down 15% from Q1; this decline may affect borrowers looking to secure quick financing for property transactions.

    Why Did Bridging Lending Decrease?

    The latest data indicates that lending by bridging providers has contracted significantly compared to earlier in the year. The drop to £173.1 million in Q2 from £199.2 million in Q1 indicates a year-on-year decline, as gross lending was £199.7 million in Q2 of the previous year. Factors contributing to this decrease include a potential postponement of transactions by borrowers, likely influenced by market uncertainties.

    How Are Borrowers Using Bridging Loans?

    Despite the overall decline in lending, the use of bridging loans for specific purposes has evolved. In Q2, the most popular reasons for taking out bridging loans were to prevent a chain break and to purchase investment properties, each accounting for 18% of all transactions. This is a shift from Q1, where these categories represented 14% and 22% respectively. The rise in loans aimed at preventing chain breaks has likely contributed to an increase in regulated bridging loans, which grew from 41% in Q1 to 48% in Q2.

    What Changes Are Notable in Bridging Loan Trends?

    Several trends emerged in Q2 that highlight the changing market of bridging loans. Demand for auction finance increased from 11% in Q1 to 14% in Q2, indicating a growing interest in purchasing properties at auction. Additionally, the percentage of heavy refurb bridging loans rose from 6% to 10%, suggesting that borrowers are increasingly looking to finance substantial renovations. Notably, the proportion of second charge bridging loans surged from 9% in Q1 to 22% in Q2, marking the highest level since early 2021. This trend reflects a growing focus on equity release as a financing strategy.

    What This Means for the Mortgage Market

    For borrowers and investors, the decline in bridging lending could signal a more cautious approach in the mortgage market. Those looking to secure quick financing for property transactions may find that lenders are focusing on larger and more complex cases. The average loan-to-value ratio increased from 52% to 55%, indicating that lenders may be willing to take on slightly more risk, but the average monthly interest rate remained relatively stable, decreasing marginally from 0.82% to 0.81%. This steadiness in rates could provide some reassurance for borrowers navigating the current market.

    Frequently Asked Questions

    What are bridging loans typically used for?

    Bridging loans are commonly used to prevent chain breaks in property transactions and to finance the purchase of investment properties. They can also be used for auction purchases and significant refurbishments.

    How has the bridging loan market changed recently?

    The bridging loan market has seen a shift towards larger and more complex cases, with a notable increase in second charge bridging loans and a rise in the use of loans for auction finance and heavy refurbishments.

  • Retirees Impacting Mortgage Lending Trends

    Retirees Impacting Mortgage Lending Trends

    The market of mortgage lending is evolving as today’s retirees reshape the market. With an increasing number of older borrowers seeking mortgage options, lenders are adapting their offerings to meet this demographic’s needs.

    TL;DR: A significant portion of the UK population will be aged 65 or over in the coming decades; lending to older borrowers surged in recent years, indicating a substantial shift in the mortgage sector.

    What is driving the rise in older borrowers?

    According to The Generation Gap Report, a substantial demographic shift is underway, with projections indicating that a notable percentage of the UK population will be aged 65 or over in the future. This trend is prompting lenders to rethink their strategies, as older individuals increasingly seek financial products tailored to their circumstances.

    How are mortgage products evolving for retirees?

    In response to the growing demand from older borrowers, lenders have introduced products specifically designed for this age group. Retirement Interest Only (RIO) mortgages have gained popularity, offering an alternative to traditional equity release schemes. RIO mortgages allow older borrowers to access funds while retaining ownership of their homes, making them an attractive option for those looking to manage their finances in retirement.

    What does this mean for borrowers aged 55 and over?

    For individuals aged 55 and above, the rise in tailored mortgage products presents new opportunities. Later life mortgages are designed to cater specifically to their needs, allowing them to unlock the equity in their homes without the complexities associated with equity release. The increasing number of loans issued to older borrowers highlights the significance of this segment of the market.

    What this means for lenders and brokers

    Lenders and mortgage brokers must adapt to this changing demographic by offering innovative products that appeal to older borrowers. The increase in Retirement Interest Only lending highlights the need for tailored advice and flexible solutions. Brokers should familiarize themselves with the specific requirements and benefits of these products to better serve their clients.

    Frequently asked questions

    What are Retirement Interest Only (RIO) mortgages?

    RIO mortgages are designed for older borrowers, allowing them to pay only the interest on the loan while deferring the capital repayment until later. This product can be a viable alternative to equity release.

    How can older borrowers access mortgage advice?

    Older borrowers can seek advice from mortgage brokers who specialize in later life lending. Partnerships, such as those between lenders and advisory firms, can provide tailored solutions and a range of options to meet individual needs.

  • Commercial Mortgage Lending Set to Exceed £1 Billion by 2026

    Commercial Mortgage Lending Set to Exceed £1 Billion by 2026

    The semi-commercial mortgage sector is poised for significant growth, with lending expected to surpass £1 billion by the end of 2026. This surge is driven by an increase in transaction volumes and average loan sizes, indicating a robust demand for semi-commercial properties in the UK.

    TL;DR: Semi-commercial mortgage lending reached £242 million in Q2 2026, a 20% increase from last year; landlords and investors should prepare for continued growth in this sector.

    What is driving the growth in semi-commercial mortgage lending?

    According to recent data, the semi-commercial mortgage market has seen a remarkable increase in lending, with £242 million completed in the second quarter of 2026 compared to £201 million in the same period last year. This represents a 20% growth, highlighting a strong demand for properties that blend residential and commercial uses. The increase in transaction volumes, estimated to have risen by 13% from 415 completions in Q2 2025 to 470 in Q2 2026, further underscores this trend.

    How are average loan sizes changing?

    Average loan sizes in the semi-commercial sector have also seen a notable increase, rising from £484,000 to £515,000 year on year. This 6% growth in loan sizes has contributed to the overall increase in lending value, suggesting that borrowers are seeking larger amounts to finance their investments in semi-commercial properties.

    What does this mean for landlords and investors?

    The growth in semi-commercial mortgage lending presents a significant opportunity for landlords and investors. With the number of active lenders increasing from 25 to 28 over the past year, and the variety of dedicated semi-commercial and mixed-use mortgage products rising by almost 20% to 94, borrowers now have more options than ever. Additionally, average loan-to-value ratios have increased from 64% to 67%, making it easier for investors to secure financing.

    Challenger banks and specialist lenders are at the forefront of this growth, offering competitive rates that range from approximately 6.0% to 9.0% based on the asset type and transaction complexity. This competitive environment is likely to benefit borrowers seeking semi-commercial mortgages as lenders vie for business.

    What are the implications of rising interest rates?

    As the market evolves, the average headline fixed rates for semi-commercial mortgages have eased slightly to around 6.70%, down from 6.85% earlier in 2026. However, borrowers should remain vigilant as rates from challenger and specialist lenders can vary significantly. TAB’s own variable-rate product is currently priced at Bank Rate plus 3.5 percentage points, equating to a rate of 7.25%. Investors should keep an eye on these interest rates, as they can impact overall borrowing costs and investment returns.

    Frequently asked questions

    What types of properties qualify for semi-commercial mortgages?

    Semi-commercial mortgages are typically secured against properties that have both residential and commercial uses, such as mixed-use developments where retail or office space is combined with residential units.

    How can I find the best semi-commercial mortgage deals?

    To find the best semi-commercial mortgage deals, consider consulting with a mortgage broker who specializes in commercial lending. They can provide insights into the latest products and rates available from various lenders.

  • UK Buy-to-Let Mortgages See Significant Growth in 2025

    UK Buy-to-Let Mortgages See Significant Growth in 2025

    The UK mortgage market experienced a notable recovery in 2025, particularly in the buy-to-let sector, with gross lending increasing significantly. This surge highlights the evolving dynamics of mortgage lending and the competitive market among lenders, which is important for landlords, borrowers, and brokers navigating the market.

    TL;DR: Buy-to-let gross lending saw substantial growth in 2025; landlords and brokers should note Santander’s remarkable increase in buy-to-let lending and the competitive shifts among lenders.

    What Are the Key Trends in the Mortgage Market?

    UK Finance’s annual data reveals that total gross mortgage lending rose significantly in 2025 compared to the previous year. Despite this growth, total mortgage balances grew at a slower rate, highlighting a significant level of activity driven by new lending, refinancing, and product switching. This trend indicates a robust market recovery, but also suggests that many borrowers are actively remortgaging or switching products rather than simply increasing their debt levels.

    How Did Major Lenders Perform?

    Among the major lenders, Santander demonstrated exceptional growth in gross lending. Barclays followed with a strong rise, while NatWest, HSBC, and Nationwide also reported solid increases. Lloyds, while still leading in total outstanding balances, recorded the slowest growth among the big six lenders.

    Notably, the rankings shifted as Barclays overtook Santander in terms of outstanding balances, with both lenders now tied. Smaller lenders like Topaz Finance and Pure Retirement also showed impressive growth, indicating a shift in market dynamics where non-traditional lenders are gaining traction.

    What Does This Mean for Buy-to-Let Mortgages?

    The buy-to-let sector has seen even more pronounced growth, with gross lending rising significantly. Santander emerged as a standout performer, with its buy-to-let lending nearly tripling, propelling it to a higher position in the rankings. Other lenders, such as NatWest and HSBC, also reported significant increases in their buy-to-let lending activities.

    However, Barclays faced a decline in its buy-to-let balances, despite an overall increase in gross lending. This suggests a strategic shift in how major lenders are managing their portfolios, focusing on new business while grappling with legacy lending issues.

    What This Means for Landlords and Brokers

    For landlords, the significant growth in buy-to-let lending presents opportunities for expansion and refinancing. The surge in Santander’s buy-to-let lending indicates a competitive environment where landlords can potentially secure better deals. Brokers should note the increasing momentum among smaller lenders, as companies like Vida HomeLoans and Kensington Mortgage Company are gaining market share, particularly in specialist lending.

    As the market continues to evolve, landlords and borrowers should remain vigilant about the changing competitive market and consider diversifying their lending options. The strong performance of buy-to-let lending suggests that there are still opportunities for growth, particularly for those willing to explore beyond the traditional big six lenders.

    Frequently asked questions

    What factors are driving the growth in buy-to-let lending?

    The growth in buy-to-let lending is driven by increased demand for rental properties, competitive mortgage rates, and a rise in refinancing and product switching among landlords.

    How can landlords benefit from the current mortgage market trends?

    Landlords can benefit from the current trends by exploring refinancing options with lenders offering competitive rates, particularly as smaller lenders gain market traction and provide tailored products for buy-to-let investments.

  • Buy-to-Let Mortgages: Key Insights from 2025 Trends

    Buy-to-Let Mortgages: Key Insights from 2025 Trends

    The UK mortgage market has experienced significant shifts in 2025, particularly in the buy-to-let sector. With total gross lending rising sharply, landlords and investors need to understand how these changes affect their borrowing options and strategies.

    TL;DR: Total gross lending in the UK mortgage market surged significantly in 2025; this growth is particularly notable in the buy-to-let sector, where Santander’s lending nearly tripled, indicating a dynamic shift in lender performance.

    How Did the Buy-to-Let Mortgages Perform in 2025?

    The buy-to-let sector saw robust growth in 2025, with gross lending increasing significantly. This surge reflects heightened activity among landlords looking to expand their portfolios or refinance existing properties. Santander emerged as the standout performer, with its buy-to-let gross lending increasing dramatically, moving up in the rankings among lenders in this sector.

    What Changes Occurred Among Major Lenders in Buy-to-Let Mortgages?

    The competitive market among major mortgage lenders shifted notably in 2025. Santander led the charge with a significant increase in overall gross lending, but Barclays also made headlines with a strong growth rate. Other lenders followed with notable increases. Despite this growth, Lloyds recorded the slowest increase among the top lenders, yet it still maintains the largest share of both gross lending and outstanding balances.

    Interestingly, Barclays overtook Santander in terms of outstanding balances, now tied with Santander in the rankings. This shift indicates a competitive push among lenders as they vie for market share in a recovering mortgage environment.

    What Does This Mean for Landlords and Investors in Buy-to-Let Mortgages?

    The strong recovery in the UK mortgage market, highlighted by increased gross lending, suggests that landlords and investors have more opportunities to secure financing. The significant growth in buy-to-let lending, particularly by Santander, indicates that lenders are keen to support this segment, which could lead to more competitive rates and flexible options for borrowers.

    Moreover, the rapid growth of lenders like Kensington Mortgage Company shows that there is momentum building outside the traditional big six lenders. This trend could benefit landlords seeking specialist products tailored to their needs. As lenders diversify their offerings, borrowers may find more tailored solutions to meet their investment goals.

    What Should Brokers and Borrowers Watch Next in Buy-to-Let Mortgages?

    Brokers and borrowers should keep a close eye on how lenders manage their portfolios in the coming months. The disparity between Santander’s growth in buy-to-let lending and Barclays’ decline in buy-to-let balances suggests a strategic shift among lenders. This could lead to changes in product offerings, interest rates, and lending criteria.

    Furthermore, with total mortgage balances growing at a slower pace, indicating a churn through redemptions and remortgaging, brokers should prepare for a potentially competitive refinancing environment. Landlords looking to switch products or refinance existing mortgages may find advantageous terms as lenders compete for new business.

    Frequently asked questions

    What factors contributed to the growth in buy-to-let lending?

    The growth in buy-to-let lending can be attributed to increased demand from landlords looking to expand their portfolios, as well as competitive offerings from lenders like Santander, which saw a dramatic increase in its buy-to-let lending in 2025.

    How can landlords benefit from the current mortgage market trends?

    Landlords can benefit from the current trends by exploring refinancing options and new lending products, particularly from emerging lenders that are gaining traction in the buy-to-let market, which may offer more tailored solutions and competitive rates.

  • UK Buy-to-Let Mortgages Surge in 2025: Key Insights

    UK Buy-to-Let Mortgages Surge in 2025: Key Insights

    The UK mortgage market saw a significant shift in 2025, with a notable increase in buy-to-let mortgages. This growth reflects changing dynamics among lenders and highlights the opportunities for landlords and investors in a recovering market.

    TL;DR: The UK mortgage market experienced a substantial increase in gross lending in 2025; buy-to-let lending surged, indicating strong opportunities for landlords and brokers.

    What Are the Key Trends in the UK Mortgage Market?

    UK Finance’s latest report reveals that total gross lending rose significantly in 2025 compared to the previous year. This robust recovery is driven by increased lending activity, including refinancing and product switching, although total mortgage balances grew at a slower rate. This discrepancy suggests a high level of churn in the market, with many borrowers opting to switch products or refinance existing loans.

    How Did Major Lenders Perform in 2025?

    Among the major lenders, Santander emerged as the standout performer, achieving remarkable growth in gross lending. Barclays followed with a strong growth rate, while NatWest, HSBC, and Nationwide recorded increases as well. Lloyds, although still the largest lender by outstanding balances, saw the slowest growth among the major players.

    Interestingly, the lender rankings shifted, with Barclays surpassing Santander in terms of outstanding balances. Other notable performers included Topaz Finance, which moved up in the rankings with a significant increase in balances, and Pure Retirement, which also climbed in position with strong growth.

    What Does the Growth in Buy-to-Let Mortgages Mean?

    The buy-to-let sector experienced even more pronounced growth, with gross lending increasing significantly compared to the previous year. Santander’s buy-to-let lending saw a remarkable increase, propelling it up in the rankings. NatWest and HSBC also saw significant increases in their buy-to-let lending.

    However, not all lenders fared equally; Barclays reported a decrease in its buy-to-let balances, indicating a shift in strategy as the lender manages new business alongside its legacy lending portfolio. This divergence among lenders illustrates the varying approaches to growth and product diversification within the buy-to-let market.

    What This Means for Landlords and Brokers

    The strong recovery in the buy-to-let sector presents significant opportunities for landlords and brokers. With lenders like Santander and NatWest aggressively expanding their buy-to-let offerings, landlords may find more competitive rates and flexible products available. This is particularly relevant for those looking to refinance or expand their property portfolios.

    Brokers should take note of the shifting dynamics, as lenders outside the traditional big six are gaining traction, especially in specialist lending. For example, Vida HomeLoans and Kensington Mortgage Company are showing strong growth, indicating a potential shift in where landlords might seek financing. This trend suggests that brokers may need to broaden their lender panels to include these emerging players to better serve their clients.

    Frequently Asked Questions

    What factors contributed to the growth in buy-to-let mortgages in 2025?

    The growth in buy-to-let mortgages in 2025 can be attributed to a recovering UK mortgage market, increased lending activity, and significant growth from key lenders like Santander and NatWest, which expanded their buy-to-let offerings.

    How can landlords benefit from the current mortgage market trends?

    Landlords can benefit from the current trends by exploring competitive rates and flexible products offered by both major and emerging lenders, allowing for better refinancing options and opportunities to expand their property portfolios.

  • Bridging Finance Offers Hit £520m in Q2 2026

    Bridging Finance Offers Hit £520m in Q2 2026

    The latest data from Brickflow reveals significant activity in the bridging finance sector, with £520 million in property finance offers recorded in the second quarter of 2026. This surge highlights the ongoing demand for development and bridging finance, despite a slight decline in search activity.

    TL;DR: Bridging finance offers reached £258.9 million in Q2 2026, while development finance accounted for £236.5 million; borrowers should note the decrease in search activity for bridging and commercial mortgages.

    How Did Bridging Finance Perform in Q2 2026?

    Bridging finance offers totalled £258.9 million in the second quarter, contributing to the overall £520 million in property finance offers reported by Brickflow. Development finance, which represented 61% of the total value of searches, amounted to £236.5 million, indicating a strong interest in funding property developments. However, searches for bridging finance fell by 13.6%, suggesting a cooling in immediate demand.

    What Trends Are Emerging in Property Finance?

    While bridging finance offers decreased, requests for decisions in principle increased by 6% for bridging finance and 12% for commercial mortgages. This indicates that while immediate applications may be declining, there is still a growing interest in securing finance for future projects. The overall decline in bridging searches aligns with broader market trends, as reported by the Bridging & Development Lenders Association, which noted a 15% drop in applications across the market in Q1 2026.

    What This Means for Borrowers and Investors

    For landlords, borrowers, and investors, the current market suggests a cautious approach to bridging finance. The decrease in search activity could indicate a shift in market sentiment, prompting stakeholders to reassess their financing strategies. However, the increase in lenders willing to finance land with detailed planning permission—up 61% from the previous quarter—could present new opportunities for development projects.

    Frequently Asked Questions

    What types of finance are included in the £520 million figure?

    The £520 million includes bridging finance offers (£258.9 million), development finance (£236.5 million), and commercial mortgage offers (£24.6 million).

    Why did bridging searches decline in Q2 2026?

    The 13.6% decline in bridging searches may reflect a broader market cooling, as indicated by similar trends reported by industry associations.