Downsizers, downhill skiers and classic car collectors – how regulated bridging can help
Guest Blog Writer: William Edwards, Bridging Business Development Manager, at Market Harborough Building Society
28 April 2025What is the first image that pops into your mind when you think about a mortgage borrower in need of short-term finance? A landlord refurbishing a buy-to-let property? Or an Aston Martin enthusiast looking to sell their collection and buy a home? Odds are it’s the former. When we think of bridging, we often think of the unregulated world of commercial landlords and buy-to-let investors. But bridging is not just for professional developers. Regulated bridging can help a diverse range of individuals take the next step on their property journey. In fact, 44.6% of short-term property loans advanced in Q3 2024 took the form of regulated bridging on residential properties1.
Regulated bridging loans can save the day when one of the transactions in a property chain falls through. Indeed, fixing a broken chain remains one of the key reasons homebuyers use bridging, particularly in sticky market conditions. But these days bridging is not just growing overall, but being used for an increasingly divergent range of circumstances.
Regulated bridging loans for unusual properties
For example, unusual properties are often hugely appealing, but require a specific type of buyer who may take some time to come along. For sellers of such properties a regulated bridge can be the passport to their next home. There are plenty of ‘unusual’ properties in the UK, thanks to the age and diversity of our housing stock. For example, there are more than 370,000 listed buildings in England alone, many of which are private homes. 2They can be beautiful to look at, but require a unique commitment such as using traditional construction methods and sourcing appropriate materials for repairs, which can limit the pool of potential purchasers and so extend the selling time. Properties with large parcels of land attached can also be slow to move, as they too often need additional upkeep. Niche properties such as those with a small commercial element like a yoga studio or consulting room may command fewer viewers than a standard home and spend longer than average on the market, despite their obvious appeal to the right buyer.
How regulated bridging loans can help downsizers
We also see a lot of downsizers looking for bridging finance to move closer to their grown-up children or other family members. People often mull over the idea of downsizing for many years, and then want to move as quickly as possible once they make up their minds, and bridging finance can be ideal for accommodating a rapid transaction. Some may look to relocate to a bungalow, in which case speed may be key. Only two million bungalows have ever been built in the UK, representing less than 8% of the housing stock, and construction of the single-story dwellings reached an 80-year low in 2024, with 1,285 built. 3So, bungalow buyers often need to act quickly, and a bridging loan can be ideal.
How specialist lenders can help
At junctures like this, homebuyers really appreciate the help and support a good broker can offer them. In turn, brokers need the help of a supportive lender, who will collaborate with them right the way through the process. The lender needs to understand the nuances of each case and get to grips with the details of the borrower’s circumstances, in order to formulate the best possible solution to meet their needs. That is why our underwriters, having first consulted with the broker, then speak directly to the borrower, to hear their story first hand.This is particularly helpful in those complex, multi-faceted cases, which we welcome. This includes cases involving property abroad – our long-established expat offering means we’re very comfortable with overseas elements and we’re happy to help someone buying a home in Aldershot before they have managed to sell their ski chalet in the Alps, for example.
In fact, we are happy to consider a wide range of background assets in our lending decisions, including vintage wine collections, classic cars and artworks – we have also offered bridging to clients needing to wait until after a closed period to sell shares.
Brokers who don’t have much experience of bridging may be wary of this part of the market. But in the eight years we have been serving the sector, short-term lending has become more effective, transparent and affordable than ever. As a mutual building society we are delighted to offer bridging solutions to those members who need them, and keen to support brokers in finding the best solutions for their clients.
Get in touch with us today!
We have an award-winning team of bridging finance experts to help you every step of the way and will work with you to ensure things process smoothly.They will make a courtesy call to your client, provide regular broker updates and add the human touch needed to ensure cases proceed from application to offer efficiently. We’re committed to honest and open communication and often turn around simple, well-packaged cases in a matter of days. The team also regularly check in with your client throughout their term.
To get in touch, please call 01858 412345 (option 2)
'The original version of this article was published in Mortgage Strategy in December 2024'
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