The Expanding Role of Specialist Lending in Today’s Mortgage Landscape

The lending landscape continues to evolve, and more advisers are recognising the crucial role that specialist lending plays in helping clients achieve their financial goals. With fluctuating interest rates, changing affordability criteria, and an increase in complex customer needs, the mainstream mortgage route simply isn’t the right fit for everyone.

This is where specialist lending, particularly in the areas of second charge and bridging finance, has stepped up to offer solutions that are both flexible and responsible.

Second Charge Lending: Sustained Growth and Growing Relevance

Second charge lending has shown consistent growth over the past two years as homeowners look for ways to raise capital without disturbing competitive first charge rates. According to the Finance & Leasing Association (FLA), new second charge business grew by around 16% year-on-year in 2024, reaching more than £1.7 billion in total lending (Source: FLA, 2024). This momentum has continued into 2025, with the market up a further 22% in lending up to October 2025.

Advisers are increasingly turning to second charges to help clients consolidate debts, fund home improvements, or access equity for business purposes. These products allow borrowers to retain their main mortgage, which is a significant advantage when base rates have increased and remortgaging could mean higher costs and potential exit fees.

With interest rates starting from around 5.49%, it’s easy to see why second charges have become competitive options for many prime customers. The ability to tailor solutions without disturbing a client’s existing first charge continues to make this an essential part of the adviser toolkit.

Bridging Finance: A Market Showing Confidence and Maturity

Data gathered from industry leading brokers shows a strong and stable bridging sector, with steady year-on-year growth in loan volumes and increasing demand for development and refurbishment finance. Q3 2025 updates are expected shortly, but the latest available data points to a sector that continues to perform with strength and resilience.

At Fluent, we’re seeing the same positive trends echoed across the Bridging market, including:

• Completed loan volumes are up 14% year-on-year versus 2024.
• Loans sold have increased 11% compared with 2024.
• Average loan sizes and the split between regulated and non-regulated cases have remained broadly stable.
• Development and heavy refurbishment finance have seen the biggest rise in enquiries, alongside the traditional areas of chain breaking and auction purchases.

These trends highlight a market that is both active and increasingly diversified. The appeal lies in bridging’s flexibility and speed—qualities that make it invaluable for clients facing tight deadlines or seeking to release value for development and investment opportunities.

Importantly, bridging finance is now viewed as a strategic funding tool rather than a product of last resort. It supports borrowers with complex needs and time-sensitive goals, while offering advisers another way to deliver strong outcomes for clients.

A Market Built on Adaptability

As we look ahead to 2026, the demand for tailored, human-centred lending solutions will only grow. Economic uncertainty, evolving work patterns, and a continued rise in self-employment mean more clients will sit just outside traditional lending parameters.

Specialist lending continues to provide that vital bridge between ambition and opportunity. For advisers, it remains an area full of potential to add value, deepen client relationships, and deliver better outcomes.

For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.