So, according to the recent Bridging & Development Lenders Association (BDLA) figures, bridging completions fell in Q2. Cue the usual hand-wringing.
The headlines landed, the commentary rolled in, and once again we found ourselves in a familiar cycle: numbers go down, eyebrows go up.
But dig a little deeper, and reality tells quite a different story. Yes, completions fell by 8.9% in Q2 compared to the record-breaking highs of Q1. And indeed, applications dipped by a modest 1.5%.
But these quarterly changes have to be understood in their proper context. Year on year, we have seen completions up by more than 30%. Applications held steady. And lender loan books continued to climb, reaching a new record of £13.1 billion.
That’s not a market in retreat. It’s a market finding its feet after a frantic period of activity.
A NATURAL RECALIBRATION AFTER A FRENZIED START
And after the burst of Q1, something had to give. The bridging sector has never been one to follow a perfectly smooth curve and responds quickly to opportunity, just as it reacts sharply to disruption. And after a run of record quarterly figures, it was perhaps inevitable the market would ease off the accelerator.
We’ve become conditioned to treat growth as the only measure of success. But sometimes, the smarter move is to step back, assess the quality of what’s coming through the door, and remember volume for volume’s sake is just noise.
A BETTER ENVIRONMENT FOR BROKERS TO OPERATE IN
If Q1 was defined by urgency, Q2 brought something far more useful: space. In our world, where speed often dominates, a slightly slower market allows for better structuring and more meaningful engagement between brokers and underwriters,
Ask most brokers what this feels like and they’ll probably say “manageable”. That’s not a glamorous headline but it’s exactly what you want when trying to structure a deal that doesn’t blow up halfway through legal due diligence.
With the pace becoming more reasonable, the temptation to force a deal into a shape it doesn’t quite fit has lessened. In its place, we’re seeing more strategic thinking, stronger borrower preparation, and better alignment between the proposition and the funding being sought.
LENDING THAT REFLECTS DISCIPLINE, NOT DEFENSIVENESS
The BDLA’s latest numbers also point to something that doesn’t often grab headlines but is arguably more important than any spike in completions: lender discipline. Average LTVs in Q2 came in at 56.7%. Defaults fell slightly. And yet loan books still grew. That combination, lower gearing and reduced risk suggests a sector that is acting not with fear, but caution.
At Inspired Lending, we’ve always tried to strike the right balance. We lend within sensible parameters, but we don’t apply them blindly. We look at the whole case, the borrower’s experience, the quality of the asset, the exit plan, and all the numbers supporting it. If we see the fundamentals are sound, then we’ll act decisively. But we won’t push the boundaries just to chase volume. We back the deal when the numbers work, and we say no when they don’t.
It’s not radical, but in a world high on hype, consistency feels almost rebellious.
A DIFFERENT KIND OF ACTIVITY, NOT A DROP IN APPETITE
From where I’m sitting, the nature of bridging activity is maturing, not evaporating. In recent months, we’ve seen a movement away from more speculative cases and a noticeable increase in deals where bridging is being used as part of a wider, more considered strategy.
Whether it’s transitional finance ahead of term funding, a time-sensitive acquisition, or a way to unlock liquidity for larger portfolio moves, the quality of demand has remained consistent.
I think It’s also worth remembering that while the quarterly numbers dipped slightly, the year on year trends are firmly positive.
The only real difference now is that borrowers, and by extension brokers, are operating in an environment that allows for better planning, more meaningful due diligence, and a greater chance of securing the right outcome first time.
WHAT EXPERIENCE TELLS US
Those of us who’ve worked in this sector for long enough know markets like this are not only normal, but necessary. After periods of heightened activity, some moderation is both expected and welcome. It helps to re-centre expectations and return the focus to the quality of lending, not just the quantity.
Brokers who understand this are already adapting. They’re speaking to lenders earlier, sense-checking exits more thoroughly, and pushing back on valuations or timelines that feel out of step with the current market.
And in doing so, they’re helping clients avoid unnecessary delays or complications, while strengthening their own credibility as a result.
FINAL WORD
There’s a tendency in specialist finance to treat every move in the data as a headline moment, a sign of trouble or triumph. But the truth, more often than not, lies somewhere in the quieter, more calm middle.
A stabilising market doesn’t necessarily mean demand has fallen away. It points to conditions that are allowing for better lending, and stronger outcomes for all parties involved.
For brokers, I think this is an excellent moment to focus on quality. Not just in terms of case selection, but in the way that cases are prepared, positioned and progressed. And for lenders like us, it’s a chance to continue backing the right borrowers, on the right terms, without the distractions that sometimes come with runaway growth.
So no, Q2 wasn’t the busiest quarter on record. But in many ways, that’s precisely why it mattered.
