When you think of a mortgage borrower who needs short-term funds, what is the first image that comes to mind? Is a landlord renovating a buy-to-let property? Or is he looking to sell a collection and buy a home? Are you an Aston Martin enthusiast? Probably the former. When we think of bridging, we often think of a world without regulation by commercial landlords and buy-to-let investors. But bridging isn't just for professional developers.
Regulated bridging helps a variety of individuals take the next step in their real estate journey. In fact, 44.6% of short-term real estate loans disbursed in Q3 2024 were in the form of regulated bridging for residential real estate. 
A regulated bridging loan can save the day if one of the transactions in the real estate chain fails. In fact, repairing broken chains is one of the main reasons homebuyers use bridging, especially in tough market conditions. But recently, bridging has not only grown overall, but is also being used in an increasingly diverse range of situations.
For example, unusual properties are often very attractive, but require a specific type of buyer, and it may take some time for one to appear. For sellers of such properties, a regulated bridge could be a passport to their next home. There are many 'unusual' properties in the UK, thanks to the age and diversity of the housing stock. For example, there are over 370,000 registered buildings in the UK alone, many of which are private homes.
Although it looks beautiful, it requires unique efforts such as using traditional construction methods and sourcing the appropriate materials for repairs, which can limit the number of potential buyers and lengthen the sales period. There is a gender. Properties that come with large tracts of land also often require additional maintenance, which can slow down relocation. Niche properties with small commercial elements, such as yoga studios or consulting rooms, receive fewer views than standard homes and have a lower market share, despite their obvious appeal to the right buyer. Your dwell time may be longer than average.
There are also many downsizers looking for bridging loans to move closer to adult children or other family members. People often consider the idea of downsizing for years and want to take action as soon as possible once they have made up their mind, and bridge finance is ideal for accommodating quick transactions. Some people may be considering moving to a bungalow, in which case speed may be of the essence.
Just two million bungalows have been built in the UK to date, representing less than 8% of the housing stock, and single-storey house construction will reach its lowest level in 80 years in 2023. Therefore, bungalow buyers often need to act quickly. A bridging loan may be ideal.
At times like these, homebuyers highly value the help and support a good agent can provide. Brokers, on the other hand, need the help of a cooperative lender who will work with them throughout the process. Lenders need to understand the nuances of each case and know the details of a borrower's situation in order to develop the best solution to meet the borrower's needs. Therefore, the underwriter must first consult with the broker and then speak directly to the borrower and hear directly from them.
This is especially useful for complex and multifaceted cases. This also includes cases involving overseas real estate. For example, helping someone buy a house in Aldershot before selling a ski chalet in the Alps.
Some lenders, like us, are willing to consider a wide range of background assets when making lending decisions, such as vintage wine collections, classic cars, and fine art, and may require you to wait until the end of the closing period to sell your stock. It may even provide a bridge to customers.
Brokers without much bridging experience may be wary of this part of the market. However, in the eight years we have been servicing this sector, short-term lending has never been more effective, transparent, and affordable.
Will Edwards is a bridge specialist at Market Harborough Building Society.
