Stay ahead of the UK mortgage market. Subscribe to the Mortgage Introducer daily newsletter for broker news, rate updates, and the industry latest delivered to your inbox every morning.
Landlords lead the charge
Purchasing an investment property was the single most popular use of a bridging loan in Q3 2026, accounting for 23% of all transactions — up from 18% in Q2. That shift points to a deliberate strategy among landlords who, unable or unwilling to wait for long-term mortgage rates to settle, are using bridging finance to secure assets now and refinance later.
In a market defined more by adaptation than decline, landlords across the UK have shown a consistent willingness to adjust their approach rather than exit altogether. Bridging lending, with its speed and flexibility, is a natural fit for investors who want to act in a window of opportunity, particularly in a flat market where sellers may be more willing to negotiate.
That appetite for purchases also showed up in the surge in first-charge bridges, which rose from 78% in Q2 to 87% in Q3. First-charge bridging — where the loan is secured as the primary debt against the property — reflects a buyer rather than a refinancer mindset. Second-charge bridges, by contrast, fell from 22% to 13%, as did heavy-refurbishment lending, which dropped from 10% to 6%. High building costs continue to make large renovation projects harder to justify for many.
Rates fall, lenders compete
One of the clearest signals in the Q3 data is what it says about lender behaviour. The average monthly interest rate fell from 0.81% in Q2 to 0.77% in Q3 — the fourth consecutive quarterly decline. At the same time, the average loan-to-value rose from 55% to 59%, meaning lenders are offering more against the same asset at a lower cost.