By Clare Yates
2 min read
At the end of November last year, the Bridging & Development Lenders Association (BDLA) reported that loan and application volume topped £13.7 billion, smashing the previous year’s £10 billion total.
This momentum shows that bridging finance is no longer just a niche or reactive option. It has become a core funding solution, giving borrowers quick, flexible access to capital for property transactions with a clearly defined exit strategy.
The BDLA data is gathered from lender members and checked by independent auditors, offering a clear and comprehensive view of the UK bridging and development lending market.
Why bridging loans are gaining popularity
The modern bridging market really took off after the 2008 financial crisis. Banks tightened lending rules, leaving buyers, developers and businesses struggling to access funds quickly. Bridging lenders moved quickly to meet demand, providing speedier approvals and more adaptable terms than conventional banks could offer.
Bridging loans have grown in popularity because they give borrowers access to funds much faster than a standard mortgage. This speed is crucial when property deals or renovations need to happen quickly. Lenders focus primarily on the value of the property and a clear exit plan, rather than detailed income checks. That potentially makes these loans more flexible than traditional lending.
Who is using bridging loans
Bridging loans are versatile. Common uses include:
Preventing property chain breaks: Helping buyers complete purchases while waiting for a sale.
Auction purchases: Meeting tight deadlines.
Buying before selling: Allowing homeowners to move quickly.
Property refurbishments: Funding renovations or buying properties unsuitable for standard mortgages.
Business funding: Covering short-term capital needs or cash flow gaps.
In short, bridging finance can be a lifeline when timing is critical and conventional lending just isn’t flexible enough. As the growth in lending shows, it can sometimes offer fast, flexible funding when you need it most. It isn’t a replacement for a traditional mortgage, but in the right situation, it can make the difference between missing an opportunity and moving forward smoothly.