Q2 2026 Bridging Market Outlook

Q1 is done. The Easter break is behind us. Here's what's actually happening across our 250+ lender panel as Q2 opens — the rates, the appetite shifts, and the deal types that are getting funded versus the ones that are stuck.

The numbers in this piece come from our own daily rate-tracking: we pull live pricing from the panel every weekday morning and publish it on our rates page. What follows is commentary, not marketing.

Rates: Steady, Not Sliding

Against expectations of gradual easing, bridging rates have barely moved this month. The sharpest residential deals sit at 0.40% per month at the single-lender level, with a realistic top-five average of 0.48–0.50% through the 65–70% LTV band — a figure that's held inside a 2-basis-point range for two weeks. Development exit remains the cheapest product on the market at 0.37% per month best-in-class, top-five average 0.45–0.47% — reflecting the short, well-understood risk profile.

Commercial has held firm. Top-tier commercial pricing is 0.58–0.63% at sub-70% LTV, rising to around 0.77% at 70–75%. Heavy refurb sits meaningfully higher — the realistic starting rate is 0.66–0.68%, median pricing 0.91–0.93%. Land with planning has actually softened a touch this week as a new lender entered the panel: the top-five average has dropped from 0.81% to 0.78% at 65–70% LTV.

The takeaway: the base rate is not the bottleneck. If you're waiting for pricing to drop before moving, you're probably waiting on a move that's not coming this quarter.

Where Appetite Has Shifted

The interesting story isn't rates — it's appetite. Three things we're seeing on the desk:

• Private capital is aggressive. Private funds and family-office-backed lenders are chasing deal flow. If you've got a clean residential or commercial case with a credible exit, the private end of the market will compete hard for it. Indicative terms in 24 hours is now normal.
• Mainstream lenders are tighter on heavy refurb. Several of the larger funded lenders have pulled back on heavy refurbishment and ground-up-adjacent work, citing cost overruns on current books. Expect tougher QS demands and lower initial drawdowns.
• Land without planning is properly hard. Only a handful of specialist lenders are touching it, and they want serious equity (below 50% LTV is typical) plus a clear planning strategy. If that's your deal, read our detailed take before you apply.

What's Getting Funded

Three product types dominated Q1 and are carrying momentum into Q2:

• Capital raising against unencumbered property. Low LTV, clean exit, fast decision. Keen rates and genuine lender choice.
• Development exit. Builds running long, original lender wants out, practical completion in sight. Our cheapest product for a reason — lenders love the short, clear risk.
• Commercial bridge-to-term. Buy with bridging, refinance onto commercial mortgage once trading data is established. Used extensively in Q1 for owner-occupied purchases and investment acquisitions alike.

What's Harder in Q2

Be honest about the friction on these:

• First-time heavy refurb. Lenders want track record. First-timers can still get funded, but you'll pay more and need a contractor with experience.
• Semi-commercial above 70% LTV. The panel narrows sharply. If you need 75%, expect a higher rate and a full commercial valuation.
• Tight-timescale purchases with no prior prep. Five-day completions are still possible, but only if the legal pack is ready and the lender has been briefed. A cold application with a 10-day deadline is the recipe for a broken deal.

What to Expect Through Q2

We expect rates to remain broadly where they are for the next three months. Any meaningful movement would require either a base rate cut the market isn't currently pricing in, or a shift in lender funding costs. Neither looks imminent.

The better lever for borrowers is structure. A clean presentation of the deal, a credible exit, and sensible LTV will pull better pricing out of the market than waiting for rates to fall. That's where a specialist broker earns their keep — positioning the deal for the lender most likely to compete on it.

For live pricing across every product and LTV band, our rates page is updated daily from the panel. To model the total cost of borrowing on your specific deal, use the calculator.