When it comes to supporting professional landlords and property investors, it isn’t about choosing between bridging loans and buy-to-let mortgages. It’s about using both strategically. Brokers don’t just look at an isolated transaction; they map out the bigger picture, understanding how each move sets up the next.
A short-term bridging loan might secure a property quickly, allowing time for refurbishment before refinancing onto a buy-to-let mortgage. An investor might need to restructure their portfolio, shifting properties between finance solutions to maximise returns.
Others are using bridging to capitalise on changing planning rules, fund commercial-to-residential conversions, or unlock capital from assets that mainstream lenders won’t support.
Bridging isn’t just about speed. It’s a tool that allows investors to be agile in a shifting market. For brokers, that means having the right funding structures in place at every stage, with lenders who understand how short-term and long-term finance work together.
With more brokers structuring deals that move between bridging and buy-to-let, lenders need to keep pace. At Hampshire Trust Bank (HTB), we’ve brought our specialist mortgages and bridging business development teams together to reflect the way brokers operate. The aim is to create a more streamlined experience, making transitions between short-term and long-term finance as efficient as possible.
Specialist knowledge, integrated approach
Bridging and buy-to-let finance might complement each other, but they’re not interchangeable. Each has its own nuances, and successful lending relies on expertise in both areas.
While lenders can provide a more joined-up experience, the need for specialist underwriting remains. Complex cases require a deeper level of understanding, particularly as more investors look at structuring finance through limited companies, adapting to regulatory changes, or diversifying across different property types.
This shift in investor behaviour is clear in refinancing trends. Industry data shows that an increasing number of landlords are refinancing onto five-year fixed-rate buy-to-let mortgages, while others are restructuring portfolios to navigate tax implications.
At the same time, bridging loan demand is at record highs, driven by investors seeking flexibility in a fast-moving market.
Brokers and investors need to move quickly, and lenders must be agile enough to support that. The ability to make clear, well-structured decisions is what ultimately keeps deals moving.
Why bridging is booming
The latest figures from the Bridging & Development Lenders Association (BDLA) highlight just how much demand is growing. In Q4 last year, completions hit a record-breaking £2.3bn, up 28.6% on the previous quarter. Meanwhile, the total size of bridging loan books passed the £10bn mark for the first time.
Investors and landlords are using bridging finance to move quickly in a competitive market, unlock value in properties that need work, and secure opportunities that wouldn’t be possible with traditional buy-to-let finance alone.
But bridging isn’t just about transactions – it’s about strategy. More brokers are working with clients to structure deals over the long term, ensuring that bridging fits within their overall investment plan. Short-term finance works best when it’s planned with a clear exit, whether that’s a transition to buy-to-let, portfolio restructuring, or refinancing at the right time.
Rising to the challenge
It’s not all smooth sailing. The private rented sector (PRS) is facing significant change, with the Renters’ Rights Bill creating uncertainty for landlords. The goal of raising housing standards is widely supported, but new regulations will inevitably have financial and operational implications for investors.
Despite this, demand for rental housing remains strong. Millions of tenants rely on private landlords, not just because they can’t afford to buy, but because renting suits their lifestyle. The PRS isn’t going anywhere, and professional landlords who adapt will continue to thrive.
We see this first-hand in the conversations we have with investors. The best landlords are evolving their strategies, looking at how they structure their portfolios to stay ahead. But they can’t do it alone.
They need lenders who move with them, cut out friction, and offer the right funding at the right time.
Looking ahead
The market is changing, and brokers who anticipate what’s coming next will be the ones who stay ahead. Flexibility is going to matter more than ever. Investors will be looking for lenders who can support them through shifting regulatory, tax, and economic conditions, with funding solutions that align with long-term investment goals.
Lenders who fail to adapt will find themselves left behind.
Andrea Glasgow is sales director – specialist mortgages and bridging at Hampshire Trust Bank
