Competition for property finance intensifies in 2026, with the speed of getting certainty of funding becoming one of the most important factors when it comes to winning deals in the UK specialist-lending market, states Phoenix Funding.
According to Pure Property Finance, average application times improved by 10 per cent for bridging finance, 15 per cent for development finance, 25 per cent for residential mortgages and 55 per cent for secured loans between 2023 and 2025.
Andrew Smith, Founder of Phoenix Funding, who has worked in the specialist-property industry for over 40-years, comments:
“A lot of our clients would prefer speed in today’s market with a slightly higher interest rate. Borrowers and brokers aren’t just looking for competitive terms any more; they are prioritising the certainty of execution, and they need the certainty of getting the funding quicker than in previous years.
While there will still be time needed to complete legals and formally close the loan, what borrowers really want is early confirmation that credit has been approved and that the process is underway and will be completed as soon as possible.
While traditional lenders and high street banks may take weeks to respond to more difficult criteria and turnaround offers, deals are lost to more agile, specialist lenders, who can move a lot quicker.
However, there may still be delays with legals from both sides, as well as other factors coming into play, which may be out of the borrower’s and lender’s control. However, getting the speed of sign-off for finance should help move things a bit quicker.”
According to Phoenix Funding, clients are increasingly cited in reasons as to why they’ve previously abandoned applications elsewhere, particularly for time-sensitive acquisitions and auction purchases.
Andrew also adds:
“Across the UK, we’re seeing more borrowers who are asking us to show them the quickest turnaround time rather than the lowest rate, and that they need financing as soon as they can get it. Of course, there will be other factors at play when it comes to how fast everything can be completed, but getting finance quickly is usually the first priority.
It’s a huge shift in how property decisions are being made in 2026, with cost almost always topping the priorities list prior to the last few months.”
Phoenix Funding says this trend is driven by a combination of market pressures, including tighter mainstream mortgage criteria, ongoing valuation uncertainties, and the need for speed in chain-break and investment transactions.
Phoenix Funding is urging lenders and brokers to rethink how they benchmark their service propositions, not just around price but around speed, clarity and predictable outcomes.
Andrews also states:
“For brokers representing clients with tight timelines, the value isn’t a basis-point saving, it’s the certainty that a deal will complete on time,” Andrew concludes. “We’re advising partners to re-prioritise their lender panels accordingly.”
