There’s nothing like a down-valuation to take the wind out of a deal. Everything’s neatly in place, the purchase price has been agreed upon, and then the valuation comes in below expectations. Cue the stress, last-minute calls, and a very real risk of the transaction falling by the wayside.
What makes this more pressing now is that down-valuations aren’t just the odd exception. They’re cropping up more frequently across the commercial sector, and it’s having a knock-on effect on funding and the broker’s ability to keep deals on the straight and narrow. I like to think this is where short-term finance, particularly commercial bridging, really comes into its own. And for brokers, knowing how and when to introduce this kind of solution can be of the utmost importance.
How a funding gap changes the broker’s role
Let’s not pretend this is always straightforward. A down-valuation often results in a shortfall that traditional lenders aren’t willing to cover. And that leaves a gap and unless it’s plugged quickly, the deal can go cold. At that point, the broker’s role changes from introducer to problem-solver.
At Alternative Bridging, we’ve had a front-row seat to plenty of these scenarios. Clients don’t always come to us first. Often, brokers come when something’s gone wrong. The numbers don’t add up, the deposit’s at risk, and completion’s days away.
Our commercial bridging loans are built with this reality in mind. They’re not designed to be clever or flashy. They’re designed to work. Whether it’s a shortfall caused by a down-valuation, or the need for a stopgap while refinancing options are arranged, the goal is the same: don’t let a viable deal die on the table.
Now, it is one thing to say bridging is useful, it is another to show it is working. BDLA figures for Q2 2025 reported completions of £2.3bn, which gives a clearer view of where the market stands. In the same period, average monthly interest rates eased to 0.81%, down from 0.86% in Q1.
That is not what you would expect in a cautious market. It suggests that brokers and borrowers are choosing short term funding in a more informed way, and lenders are supporting that with steady pricing.
We had a case in Hampshire earlier this year that still stands out to me. A client had secured a commercial building and everything was set to move forward, until the valuation came in lower than hoped for.
That meant the loan amount no longer covered what the client needed, leaving a £2m gap to bridge with very little time. Working with their broker, we stepped in with a facility that covered the difference and kept the purchase on track. Deposit saved, deal completed, and a lot of relief all round.
What strikes me, and what brokers should definitely keep in mind, is that these moments are where your value is clearest. Spot the issue early, line up the right lender, and you’ve done far more than ‘source finance’. You’ve kept your client’s business plans intact. And, more often than not, you’ve secured their trust going forward.
Why bridging is also about giving clients room
It’s not always about closing a funding shortfall either. Bridging can give clients room to breathe, and sometimes that’s all that’s needed. Whether it’s waiting for a term lender to catch up or juggling assets, that headroom can make all the difference, and you’d be amazed how many deals just need a week or two of room to move.
Still, we have to be realistic. Down-valuations aren’t going away. If anything, we’ll probably see more of them in the months ahead. That’s not great news, but it’s not a disaster either, not if brokers are ready to pivot, act quickly, and make full use of the options already available to them.
Jonathan Rubins is director and chief commercial officer at Alternative Bridging Corporation
