New research shows growth in homeowners using short-term finance to break property chains
The value of new regulated bridging loans taken out by UK homeowners rose to £1.83 billion in the year to 31 March 2026, up from £1.75 billion in the prior 12-month period, according to research published by Karis Capital.
The specialist real estate debt and insurance advisory firm attributes part of the increase to a growing number of owner-occupiers seeking to sidestep delays caused by property chains.
Rather than waiting months for other transactions in a chain to complete, more buyers are turning to bridging finance while they await a more favourable opportunity to sell their existing homes. Once a sale completes, the bridging loan is repaid and the borrower refinances onto a standard long-term mortgage.
Bridging loans are typically offered on a short-term basis — from a few weeks up to 12 months — provided the borrower can demonstrate a clear exit strategy. Beyond breaking property chains, regulated bridging products can also facilitate the purchase of probate properties where family members require a swift sale, enable one party to buy out a former partner following a divorce, fund the acquisition of properties that fall outside standard mortgage criteria due to ongoing renovation works, and finance major refurbishment projects ahead of refinancing with a high-street lender.
"In a property market that is being slowed for the moment by fluctuating interest rates, bridging loans give some buyers a different route to get their property purchases completed," said Francesco Amato (pictured right), senior associate of specialist regulated finance at Karis Capital.
"While a bridging loan won't be suitable for everyone, it's an option that allows buyers in some situations to move their purchases forward when a conventional mortgage isn't suitable. With the right exit plan, they are an important tool for property buyers."
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
