Bridging Completions Fall to £1.6bn as Lenders Focus on Exits

ByExpertBrokerUK

The latest figures from the Bridging & Development Lenders Association (BDLA) show a noticeably quieter market. Bridging and development completions came in at £1.6 billion in the second quarter of 2026, down from £2.3 billion a year earlier. Applications fell from £10.2 billion to £7.3 billion over the same period, and total reported loan books dropped from £13.1 billion to £10.3 billion.

Compared with the first quarter of 2026, applications were down 26.3%, completions 15.2% and loan books 10.6%. That is a marked change from late 2025, when applications hit an index high of £11.7 billion.

Why it is happening

The BDLA links the slowdown to the wider housing market. Fewer sales are being agreed and transactions are taking longer to complete, which means fewer new enquiries for lenders. Data from TwentyCi cited in the report shows UK sales agreed running more than 5% below the previous year for four consecutive months.

At the same time, the cost of refinancing out of a bridge has edged up. Moneyfacts reported that the two-year swap rate reached 4.26% on 3 September, and the average two-year fixed rate rose to 5.63% in early September.

Exits under the microscope

The key message for borrowers is about exit strategy. BDLA chief executive Adam Tyler said that where a loan depends on a sale, lenders need to consider how long that sale could realistically take and what alternatives exist if it does not complete within the term. Lenders are placing more weight on due diligence and testing assumptions at the start.

What this means for you

For investors and developers, this is not a reason to avoid bridging – but it is a reason to prepare properly. In our experience, the strongest cases now show:

  • A realistic sale price backed by local evidence, not best-case figures
  • A sensible marketing period built into the loan term
  • A credible plan B, such as refinancing onto buy-to-let or commercial terms
  • Clear numbers on works, costs and any interest roll-up

If you are planning a bridge, or your current bridge is approaching the end of its term, it pays to talk early. We can help you set out an exit that lenders will take seriously.

Source: Rod Bolivar, “Bridging completions slide to £1.6 billion with lenders scrutinising exits”, Mortgage Introducer, 23 September 2026 – read the original article

This article is general information, not advice. ExpertBrokerUK is a broker, not a lender. We arrange unregulated finance for business and investment purposes. Your property may be repossessed if you do not keep up repayments on a loan secured on it.

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