Lender Activity & Product Updates
Lender competition remains evident across both bridging and buy-to-let markets, with several providers actively adjusting pricing and criteria to maintain deal flow.
In the bridging space, lenders such as MT Finance, Octane Capital and Together continue to show strong appetite for refurbishment-led transactions, including heavier schemes involving structural works, extensions and planning-led intensification. We are also seeing increased flexibility on leverage for experienced borrowers, particularly where exit routes are clearly evidenced and supported.
On the buy-to-let side, lenders including Shawbrook and LendInvest remain active, with ongoing adjustments to affordability models. There are early signs of improved borrowing capacity on higher-yielding assets such as HMOs and multi-unit blocks, driven by stabilisation in swap rates and more pragmatic rental stress assumptions.
Development finance lenders remain competitive on smaller to mid-sized schemes, although underwriting remains disciplined. Particular focus continues to be placed on build cost validation, programme timelines and realistic GDV assumptions.
Market Trends
Demand remains strongest across:
- Bridging for refurbishment and asset repositioning
- Buy-to-let refinancing following works
- Smaller development schemes with defined exit strategies
We are seeing a continued increase in transactions involving asset intensification—particularly HMOs and multi-unit conversions—where borrowers are seeking to enhance income and overall asset value.
Lenders remain cautious on projected end values, particularly where deals rely on optimistic rental assumptions or aggressive valuation uplifts.
Rates & Liquidity
Swap rates have remained relatively stable over recent weeks, which is beginning to translate into more consistent lender pricing.
While rates remain elevated compared to historic norms, we are seeing:
- Increased pricing competition within bridging
- Greater consistency across BTL product ranges
- Strong overall liquidity for well-structured transactions
Transaction Insight
We recently arranged a bridging facility for a client who already owned a 4-bed HMO and was seeking to intensify the asset to a 7-bed following planning approval.
The project involves a heavy refurbishment, including full internal works, reconfiguration of the existing layout, a rear extension and a loft conversion.
To facilitate this, we structured a bridging loan to take out the existing lender and provide a build facility with a new lender, enabling the client to proceed immediately with the works.
With planning secured and funding in place, the asset is now positioned to deliver an improved unit mix and enhanced income profile on completion.
This is a clear example of bridging finance being used to unlock additional value from an existing asset through structured repositioning.
Outlook
The current market continues to favour borrowers with a clear strategy, realistic assumptions and well-defined exits.
Lender appetite remains strong, however the quality of execution—particularly around structure and exit planning—is increasingly determining which transactions progress smoothly.
If you are currently reviewing a transaction or exploring funding options, feel free to get in touch to discuss how it can be structured.
