In a fast-paced world of property finance, not every bridging finance application will be successful the first time around. For brokers, this can be extremely frustrating. Not only because a deal falls through, but because it can feel like a missed opportunity for the client too. Approximately 78,855 property sales collapsed in Q1 of 2025 alone, costing buyers an estimated £275.5 million (source: Mortgage Soup). This shows the level of risk and without bridging support, even more cases would have fallen through.

A declined bridging finance case doesn’t mean it won’t complete. Understanding why bridging finance gets declined is the first step to completing more cases and delivering better outcomes.

Whilst bridging loans offer flexibility, they also come with their challenges. From weaker exit strategies and down valuations to incomplete documentation there are many reasons a lender might decline an application. However, with support from a specialist finance expert like Crystal Specialist Finance, many of these cases can be recovered or repositioned.

In this article, we explore the common decline reasons brokers face with bridging finance, how to resolve them, and most importantly how to turn declines into completions. If you want to improve your conversion rate and close more cases, understanding how to win a case back is essential.

Understanding Why Bridging Finance Cases Get Declined

A bridging loan is a short-term solution used to cover a funding gap. In 2024, UK bridging lending totalled £822.2 million (source: Mortgage Solutions). This loan type can be used for property purchases, light/heavy refurbs, development finance projects or almost any other legal scenario.

As a broker, understanding the common reasons why bridging finance cases get declined will help to ensure smoother application processes and better outcomes for your clients. Despite the flexibility bridging finance can provide, there are a few key areas during the application process you must get right. Overlooking these can quickly lead to a decline.

One of the main reasons for a bridging finance decline is an unclear or unrealistic exit strategy. Lenders need to be confident that the borrower can repay the loan within the agreed term. Whether the exit is the property sale, refinance or another method it must be supported by evidence. If you state that your client has an exit strategy without any proof of a lender’s agreement, it can raise concerns.

Valuation issues are another stumbling block. A property that is overvalued, has structural concerns, or is a non-standard property type may be deemed too risky. If the bridging loan is based on an inflated or speculative valuation, the lender could decline the deal or revise the terms. This happens frequently in development or refurbishment cases.

Legal or title issues, such as unregistered land, planning problems, or undisclosed restrictions can also delay progress. Brokers must ensure that legal packs are reviewed early, and any potential issues flagged upfront.

Another reason your clients bridging application may get rejected is due to incomplete or inaccurate information during the application stage. A well-packaged case with full transparency will be more likely to go through quicker.

Addressing the above proactively will not only reduce the likelihood of decline but also build trust and credibility in your submissions.

Recovering From A Declined Bridging Finance Case (6-Step System)

A declined bridging finance case doesn’t necessarily mean it’s the end of the road. As a broker, the ability to recover and reposition a deal can be the difference between a lost opportunity and a successful completion. The key lies in understanding the reason for the decline, addressing it and knowing how to reposition the application effectively. Whether it be with the same lender, or a suitable alternative bridging lender.

Step 1 – Identify the specific reason for the decline

The first step is identifying the exact reason for the decline. Bridging cases can be rejected for several reasons – unrealistic exit strategies, down valuations, legal concerns or incomplete/inaccurate information. At Crystal, the most common decline reasons we experience are down valuations or reduced Loan to Value (LTV).

Step 2 – Resolving rather than assuming

The next step is focusing on how to resolve the issue, rather than making assumptions. An open and honest conversation with the Underwriter is crucial at this stage. Gaining additional clarity on the initial application can help to understand if the case can be saved with the current lender. Or if alternative lender options need to be explored.

Step 3 – Strengthen the exit strategy (if needed)

If the issue lies with the exit strategy, work with the client to strengthen it. Provide evidence of refinance agreements in principle, sales progress or other viable repayment methods. A solid exit strategy can reinstate lender confidence.

Step 4 – Address Valuation Challenges

In refurbishment cases, lenders reported a 30-40% higher decline rate, and down-valuations were the main contributing factor (source: Bridging & Commercial). For valuation shortfalls, review the surveyor’s comments in detail. If you think the valuation is unfair or inaccurate, it could be worth challenging it with supporting comparables. Alternatively, consider whether a different lender might take a more favourable view of the property.

Step 5 – Tackle legal or title issues head-on

Legal/title issues can be solved through proactive communication with solicitors. Unregistered land, planning irregularities or restrictive agreements don’t always have to be deal breakers. However, they do need an explanation as well as a legal solution.

Step 6 – Repackage the deal

Repackaging the deal clearly, comprehensively and accurately is crucial. You should ensure the revised submission includes a clear summary, evidence of the exit, an updated valuation (if needed) and supporting documentation for any concerns which caused the previous decline.

Recovering a declined bridging case is about adaptability, communication and expertise. At Crystal, we’re well equipped to assist you with tackling any issues head on, helping to turn a ‘no’ into a successful ‘yes’. In the last 18 months, we have requoted a total of 2011 bridging loan cases. Reasons for requoting varied. From changes in the initial loan amount and term to finding alternative lenders with products tailored to the client’s needs.

Mapping Out Alternative Bridging Finance Lenders

Your clients bridging loan may have been declined by one lender, but there are many alternative bridging lenders who could be better suited to the client’s circumstances. Once you fully understand the reason behind the declined bridging application you can assess the case against other bridging lender criteria on the market. At Crystal, changing lenders allowed us to save 24% of declined bridging cases in 2024.

Segmenting bridging lenders into tiers will help to find one most suitable for your client’s needs.

Bank Bridging Lenders – Traditional high street banks tend to have a strict criteria, including credit and income checks. Typically, bridging loan turnaround times with a high street bank are around 8 weeks (source: MoneyAge). Suitable for clients with low-risk scenarios.

Specialist Bridging Lenders – Non-bank financial lenders often have a much more flexible criteria as they place focus on the property involved in the deal during the underwriting process. Specialist bridging lenders can complete deals in 32 days on average (source: Bridging Trends). This is much faster than a traditional bank. Useful when time is of the essence!

Private Bridging Lenders – Individual investors are highly flexible, as they will assess the bridging deal based on asset value and their relationship with the borrower. Private bridging lenders are useful in high-risk scenarios, or for properties with unusual circumstances.

Using a specialist broker like Crystal Specialist Finance can help narrow down options for your client, quickly. Thanks to our extensive panel of lenders and our knowledge of their criteria, we can provide quote options and help you place a case you simply can’t. We will work with you to re-package the case carefully, ensuring any issues from the previous declined application have been addressed. We’re pleased to have successfully completed 25% of requoted cases in the last 18 months.

Bridging Finance Case Studies

At Crystal Specialist Finance, we are one of the market leaders in the bridging finance space, consistently solving complex cases that requires speed, precision and flexibility. Here are a few of our recent bridging loan case studies we’ve helped close, when brokers and their clients needed a solution, fast!

£6.2M Bridging Finance Solution for a Medical Business

Due to the niche property type and nature of the Limited Company involved in the deal, this wasn’t a straightforward case to fund. Here’s how we turned a challenge into a completion.

£1.8M Bridging Loan Delivered Against the Clock

Here’s how we secured a bridging loan to complete a ground-up rebuild, fund the purchase of a dream holiday home and pay off an existing bridge. A triple success!

Bridging Loan for a Grade II Listed Building Through a SSAS

With this being an usual property type, funding this deal proved a challenge we were more than ready to solve. Read on to see how we found a lender in just 3 days.

From Auction to Completion on a £2.1M Bridging Loan Deal

A broker was unable to deliver a solution at the last minute, and with an auction purchase deadline looming the clients needed a quick solution. Here’s how we made it happen.

£7M Bridging Loan Secured for a Family-Owned Caravan Business

Due to the niche nature of the securities involved in this deal, we needed to ensure maximum LTV was achieved to raise the full loan amount required. Discover how we achieved the client’s goal within their timescales.

On an average bridging finance case, you can earn up to £2,200.

How To Help Speed Up A Bridging Finance Application

Focusing on preparation, proactive communication and efficient coordination between all parties involved is crucial, when you want a bridging deal to fund quickly. At Crystal Specialist Finance, we actively chase all relevant parties at every stage to ensure your clients deadline is met. Freeing you to focus on growing your business in other areas.

Adopting the below strategies can help to ensure a smooth, stress free process from initial application through to completion.

Gather all documentation upfront – The fastest applications begin with a complete pack of supporting accurate documents. Bridging finance lenders will require ID, proof of income, credit profile, property information including valuation reports and most importantly the exit strategy.

Pre-assess the deal thoroughly – If you’re unsure, our expert team can help you ensure the deal is viable before submitting it to a lender on our panel. Resolving any issues in the early stages will avoid time-wasting back and forth.

Work with experienced solicitors – Solicitors familiar with bridging finance is vital. They understand the time-sensitive nature of the deals and are equipped to act quickly. We have solicitors we can recommend, to help keep your client’s bridging application moving in the right direction.

Instruct the valuation early – Valuation delays are common, so arranging a valuation as soon as possible is ideal, whether this be in person or an Automated Valuation Model (AVM).

Often, the time it takes to fund bridging finance relies heavily on the speed of the broker, and solicitor, rather than the lender. The average time it takes for Crystal to instruct lenders once we have requoted with a new lender is 26.6 days. That’s 5 days below the industry average!

Click here to view other tips for fast funding on bridging finance.

Revisiting Declined Bridging Finance Cases

As a broker, you should make it a regular part of your client care process to revisit declined bridging finance applications at intervals of 3, 6 and 9 months. Financial circumstances, property values and regulations are constantly changing, meaning that what was once a declined case could be approved when revisited.

Your clients who were previously declined bridging finance may have improved their credit score, increased equity in their property or resolved adverse issues that initially caused the application to be rejected. Market conditions may also shift in their favour. Interest rates, lender criteria or LTV can change, opening doors that were previously closed.

By revisiting old cases, you demonstrate proactivity and a genuine interest in helping your clients achieve their desired outcome. Reviving previously dead leads into successful case completions will also boost your income. It is a great opportunity to re-educate clients on bridging finance. Particularly for buy-to-let and commercial cases, if it wasn’t considered beforehand. Having a relationship-focused approach can turn past disappointment into future wins.

Bridging Finance Seasonal Shifts & Lender Appetite

The bridging finance market experiences recurring seasonal patterns that have an influence on both the volume of applications and the appetite of lenders. These trends evolve as the market changes and understanding them is essential for effective planning and successful case completions. At Crystal Specialist Finance, we monitor market trends and lender behaviour to strategically time your clients’ applications for the best possible outcomes.

We typically see slowdowns during seasonal periods, such as Christmas, the new year and summer holidays. During these periods, speed and volume of bridging finance transactions is impacted. However, in Q1 of 2025 we saw a record £2.8bn in completions. A sign that the sector has developed the resilience to perform even during historically quieter times.

Despite this growth, subtle seasonal impacts still influence lender processing capacity and decision-making speed. At Crystal, our expertise and knowledge of the market allows us to advise brokers like you on optimal application timing. This has contributed to our 25% success rate in recovering previously declined cases in the past 18 months.

During peak holiday periods, such as Christmas and summer, processing delays may occur due to reduced staffing. However, thanks to our long-standing lender relationships and proactive planning, we continue to drive progress during these periods. Additionally, tax year-end deadlines bring increased activity as clients aim to optimise their financial positions. Our team uses real insights to help you navigate these surges and explore alternative lender opportunities.

Anticipated Bank of England rate cuts towards the end of 2025 are also expected to shift lender appetite. Crystal’s understanding of how lenders adjust to interest rate changes allows us to better time submissions, to help ensure successful bridging finance completions.

Improving Outcomes Through Bridging Finance

If you are looking to close more cases and maximise your income, you should consider how bridging finance can help you convert more deals. Unlike traditional mortgages, a bridging loan is designed to be fast and flexible. If you have clients purchasing properties at auction, are looking to secure time-sensitive investments for their buy-to-let portfolio or are needing a cash injection for commercial purposes, bridging could work as a solution.

At Crystal Specialist Finance, we have a great understanding of bridging finance lenders criteria, acceptable exit strategies and how to structure deals appropriately. By partnering with us, you are positioning yourself to say ‘yes’ more often. Not only will we support you with improving your conversion rate, but we will also help to enhance your client satisfaction by delivering solutions quickly and tailored to your client’s needs. What’s more, you can earn competitive commission upon completion. The average broker commission per requoted case we completed is £4,000.

We will reach out to our panel of 30+ bridging lenders and manage the application through to completion on a packaged or referred basis. The time you save can be reinvested into sourcing new clients, building relationships or re-visiting cases you’ve previously sidelined.

The key to winning declined bridging finance deals lies in education and process. It’s essential to understand which scenarios are suitable for bridging, collaborate with a specialist and effectively manage client expectations.

Contact our New Business Advisers on 01827 337710. Alternatively, you can email us at enquiries@crystalsf.com. We’re committed to helping you turn those bridging declines into completions.

Useful Bridging Finance Tools and Resources

We have created a suite of useful guides, and tools to support you with your bridging finance cases.

To explore our ultimate bridging guide for brokers, click here.