Aldermore Bank will stop taking bridging loan applications from 1 September.
The lender says it is doing this to concentrate on its heartland mortgage areas.
An Aldermore statement says: “As of the 1st September we will no longer accept bridging applications but continue to focus on our core mortgage proposition in, residential mortgages, buy-to-let, commercial mortgages and property development.
“We will honour all existing applications up to and including 31st August 2016.”
The changes will apply across the country.