Average completion times fall despite increase in applications
The UK bridging finance sector continued to show strength in the first quarter of 2025, maintaining steady lending volumes and achieving the fastest average completion times on record, according to the latest data from Bridging Trends.
Contributors to the index reported total gross lending of £202 million, nearly unchanged from the previous quarter.
Despite a rise in applications, average completion times fell from 39 days in Q4 2024 to just 32 days in Q1 2025 — marking the quickest turnaround since Bridging Trends began tracking the metric in 2015.
The sector’s momentum follows a solid close to 2024, with expectations of further growth this year. According to analysis by specialist lender West One Loans, the bridging loan market could expand to £12.2 billion in total loan books by the end of 2025, signalling continued investor and borrower interest.
Investment property acquisitions surged to become the leading purpose for bridging loans, rising to 23% of all transactions in Q1 2025 from 13% in the previous quarter. The increase likely reflects borrower efforts to take advantage of the stamp duty incentive, which ended on March 31.
Other loan purposes also gained ground. Heavy refurbishment loans rose from 9% to 11%, while re-bridging climbed to 10% from 8%, pointing to growing confidence among borrowers about future market conditions.
Demand for first charge bridging loans increased, while regulated loans held steady at 44% of total lending. Unregulated loans also remained unchanged at 53%. Knowledge Bank reported that searches for regulated bridging products topped broker criteria during the quarter.
Average loan-to-value ratios dipped slightly to 55.4% from 55.7% in Q4, while the average loan term stayed at 12 months for the 14th consecutive quarter.
“The Bridging Trends Q1 2025 data shows remarkable market stability,” said Raphael Benggio (pictured left), director of bridging at MT Finance. “The uptick in investment purchases, from 13% to 23%, suggests a strong link to stamp duty considerations, demonstrating borrowers’ keen awareness of these opportunities.
“The resultant decrease in completion time, where a surge in activity could have potentially strained processing times, represents the sector’s enhanced efficiency, showing how quickly lenders can support the market. We expect continued sector stability and favourable market conditions throughout 2025.”
Benjamin Peace (pictured centre), bridging and development finance specialist at Brightstar Financial, noted that bridging finance continued to evolve in Q1 2025, setting a new benchmark for speed and responsiveness.
Despite an increase in applications, average completion times dropped by a full week – this progress reflects sharper underwriting, greater lender agility, and a broader shift toward a more efficient, borrower-focused market,” he said.
Meanwhile, Knowledge Bank’s sales director, Shane Chawatama (pictured right), said that brokers are responding to shifting borrower demand amid heightened market activity.
“With the race towards the stamp duty Q1 deadline, this may point to brokers fast-tracking certain cases to capitalise on potential savings, which highlights the versatility of the bridging market,” he said.
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