"As the saying goes, “success loves speed”. Bridging finance makes fast completions possible and keeps landlords agile in the market"
- Michael Allison - Roma Finance
PR: How are landlords using bridging finance in today’s market, and what types of projects are proving most popular?
MA: Landlords are increasingly using bridging finance to capitalise on the buying opportunities emerging from other landlords exiting the market. This is particularly evident in the acquisition of below-market-value portfolio purchases.
Bridging finance provides the speed and flexibility necessary to act quickly in competitive situations, thereby enhancing the buyer’s position. Additionally, landlords are utilising various valuation methods, including Automated Valuation Models (AVMs) and Desktop Valuations, which now includes the use of AI, to expedite the funding process and make informed purchasing decisions.
PR: What should property investors be aware of when comparing bridging lenders, and what are the key terms they should look out for?
MA: When comparing bridging lenders, property investors should prioritise certainty of funding—knowing that a lender can and will deliver as promised, is essential. Alignment on timeframes between the lender, borrower, and vendor is also critical, so transparent service level agreements (SLAs) are a must.
Investors should look beyond just the interest rate and assess the total cost of borrowing, including all fees and the true Day 1 advance. Another key consideration is the penalty structure; deals don’t always go to plan, so understanding what happens if the loan term needs to be extended is vital to avoid unexpected and costly charges.
PR: How has demand for bridging changed over the past 12 months, and what’s driving that shift?
MA: Over the past year, demand for bridging finance has continued to grow steadily. This rise is largely due to increased awareness and understanding of the product among property investors, which in turn builds confidence in its use.
Bridging finance allows investors quick access to capital, which is often necessary for securing property deals in a fast-paced market. Additionally, as not all properties are mortgageable on day one, bridging provides the time and flexibility needed to carry out improvements and boost a property’s specification and value before refinancing.
PR: In what scenarios can bridging finance offer landlords a competitive advantage, especially in a high-rate or fast-moving market?
MA: Bridging finance gives landlords a clear edge when speed is essential. In high-rate or fast-moving markets, having a lending partner who truly understands your business model means you can confidently make offers, knowing the funding is in place. The ability to complete deals quickly can be a deciding factor in winning a bid, especially when competing with other buyers.
As the saying goes, “success loves speed”. Bridging finance makes fast completions possible and keeps landlords agile in the market
PR: What’s your outlook for the bridging sector in 2025, and how do you see investor demand evolving?
MA: Investors are expected to grow, with more landlords recognising how bridging can be integrated intelligently into their acquisition strategies. As understanding improves, bridging finance will increasingly be factored into operating models and cash flow plans, helping to make deals financially viable.
In short, we’ll likely see bridging become a more mainstream and strategic tool in the property investor’s toolkit.
