Higher Bridging Loan Lending is Based on Rising Sales Fall Through Risk

Rather than risk losing their dream home, purchasers are increasingly turning to short-term financing.

A consortium of the UK’s major bridging loan lenders says a surge in lending in the second quarter of 2024 was caused by home purchasers using their bridging loans to ‘save transactions’ that appear to be falling through.

Rightmove has attributed an increase in sales fall-throughs on Estate agents overpricing homes only to have to back down when offers and viewings do not come through.

Tim Bannister, the spokesperson for Rightmove, had the following to say:

According to the latest Bridging Trends industry study, total lending climbed quarter on quarter to £201.8 million, with ‘preventing a chain from collapsing’ becoming the most frequent reason for people to use bridging finance. This currently accounts for over a quarter of all bridging loan uses, followed by people looking to invest in properties and purchase property at auctions.