The growing scale and maturity of the UK bridging loan market have now caught the attention of global rating agencies. In a recent report, Fitch Ratings identified short-term property lending as a potential new asset class for securitisation — a move that could significantly transform the sector.
Fitch noted that the market has expanded rapidly over the past five years, fuelled by increased participation from non-bank lenders and institutional investors. With greater volume and liquidity, bridging loans may soon meet the structural requirements for packaging into asset-backed securities.
This development could open new funding channels, enabling lenders to recycle capital faster and offer more competitive rates. It would also attract institutional investors seeking exposure to the UK real estate debt market without the volatility of direct property ownership.
However, Fitch also cautioned that transparency, credit quality and underwriting standards must remain strong. As with any securitised product, the key to long-term success lies in robust data, responsible lending and proper risk assessment.