Karis Capital has reported a significant increase in its lending activities, with new loans reaching £254.2 million in the first half of 2026. This marks a 29% rise from £197.8 million during the same period last year, highlighting a robust demand for mortgage products in the UK.
How Did Bridging Finance Perform in the Mortgage Sector?
Bridging finance saw one of the most notable increases, with Karis Capital arranging 91 loans in H1 2026, a substantial rise from 42 loans a year earlier. This surge reflects a growing trend among borrowers seeking quick access to funds, particularly in competitive property markets.
What About Residential and Buy-to-Let Mortgage Lending?
Residential and buy-to-let (BTL) lending also experienced growth, with 50 loans arranged in the first half of 2026, up from 31 in H1 2025. This increase suggests that landlords and homebuyers are actively pursuing opportunities, despite broader economic uncertainties.
What This Means for Borrowers and Investors in Mortgages
The increase in lending volume indicates a healthy appetite for mortgages among borrowers. For landlords, the rise in BTL lending could signal a more competitive rental market, prompting them to secure financing sooner rather than later. Investors should keep an eye on the development finance sector, which saw £55.3 million arranged in H1 2026, up from £38.1 million in the previous year, suggesting potential opportunities for growth in property development.
Frequently Asked Questions
What factors are driving the increase in mortgage lending?
The increase in mortgage lending is driven by a combination of strong demand for residential and buy-to-let properties, as well as a growing interest in bridging finance solutions among borrowers.
How can I benefit from this growth in the mortgage market?
Borrowers can benefit by exploring various mortgage products, including bridging finance, to secure funding quickly. Landlords may find it advantageous to act swiftly to capitalise on competitive rental opportunities.
