What 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 properties.

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.

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.

They 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.

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-storey dwellings reached an 80-year low in 2023. So, bungalow buyers often need to act quickly, and a bridging loan can be ideal.

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 underwriters, having first consulted with the broker, must then speak directly to the borrower, to hear their story first hand.

This is particularly helpful in those complex, multi-faceted cases. This includes cases involving property abroad – for instance helping someone buy a home in Aldershot before they have managed to sell their ski chalet in the Alps.

Some lenders, like ourselves, are happy to consider a wide range of background assets in lending decisions, including vintage wine collections, classic cars and artworks – even offering 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.

Will Edwards is a bridging specialist at Market Harborough Building Society.