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Trouble brewing for bridging and development lenders?

Journalist: Tom Dunstan, FTAdviser

ended 04. March 2026

Recently, the Bridging and Development Lenders Association CEO, Adam Tyler, issued a statement discussing turbulence within the market.

“As the trade body for bridging and development lenders, the BDLA is aware of current commentary regarding a small number of lenders in the sector at the present time. Our view is that it is not reasonable for us to comment on individual firms whilst matters are under review. We are focused on the continued stability of the wider membership and the protection of the whole industry's reputation," he said.

“Our industry is built on resilience and liquidity. Despite the operational challenges that can arise in any economic climate, the sector remains strong, vibrant, and ready to lend. The BDLA exists to champion the professionalism and high standards that the market expects.

“We are here to support our members and ensure that the bridging sector remains a trusted, transparent, and effective route for finance. Our priority remains the health of the market and the delivery of excellent outcomes for every customer.”

What is Tyler referring to here? What lenders is he alluding to? What is the “commentary” mentioned?

2 responses from the Newspage community

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Editor
Bob Singh
Founder at Chess Mortgages
It’s an open secret that two respected names in the bridging space have unexpectedly folded overnight leaving investors , borrowers and staff high and dry.

Bridging lenders are not supposed to fold. The lending is usually at low LTV’s and interest often taken up front.

Market Financial Solutions ( MFS ) and Century Capital both closed their doors within days of each other

Similar stories have emerged across the pond with 2 lenders there also going to the wall.

As it will no doubt transpire the alleged reasons are lack of checks and balances and clever accounting - too clever even for the auditors! Double pledging assets to leverage higher and dealings with PEP Clients was the trickle that finally burst the dam.

I have no doubt there are many investors asking searching questions to their lenders to ensure we don’t see a third casualty


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Editor
Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
When trade bodies issue statements like this, it usually follows market commentary around funding lines, liquidity pressure or operational strain affecting a small number of lenders.
Adam Tyler isn’t likely referring to a systemic issue across the sector, but rather isolated situations that have attracted attention within the specialist finance space. In any niche lending market particularly bridging and development, where funding structures can be more complex individual lender challenges can trigger wider speculation.
The “commentary” mentioned is typically industry discussion around funding facilities, paused lending, delayed completions or restructuring conversations. That doesn’t automatically indicate sector wide weakness.
The key point in his statement is reassurance. The bridging market remains largely well-capitalised and relationship driven. Isolated turbulence should not be mistaken for structural instability.
Transparency and professionalism safeguard trust.