Latest Bridging Trends report points to faster execution and a shift in investor behaviour
Average completion times for bridging finance fell to 43 days in 2025, according to the latest Bridging Trends data, down from 47 days in 2024 and matching the lowest level recorded in 2017.
Bridging Trends contributors reported £811 million of completed bridging loans in 2025, a 1.4% decline on the £822.2 million recorded in 2024. The annual fall was partly driven by a softer final quarter: Q4 2025 volumes totalled £199.9 million, compared with £209.4 million in Q3. The dip follows a pattern seen in previous fourth quarters and may also reflect caution ahead of the November Budget.
Investment purchases were the leading purpose for bridging loans in 2025, accounting for 20% of transactions, up from 19% a year earlier. Heavier refurbishment activity also grew, with heavy refurb loans rising from 9% of advances in 2024 to 11% in 2025, indicating that landlords and investors are both expanding portfolios and seeking to enhance returns. The shift was mirrored in a modest increase in unregulated bridging, which edged up from 54% to 55% year on year.
Re-bridging saw a more marked change, rising from 7% of activity in 2024 to 10% in 2025. While the wider housing market has shown signs of stabilising, relatively subdued sales appear to be affecting borrowers whose exit relies on disposing of property.
Pricing also moved lower. The average monthly interest rate decreased from 0.88% in 2024 to 0.84% in 2025. A reduction in average loan-to-value (LTV) ratios – down from 58% to 55% – is likely to have helped, as did a rise in first-charge lending from 86% to 89%. Lender competition on rates intensified over the period, against a backdrop of ample liquidity.
Criteria search data from Knowledge Bank shows that in 2025 the most common bridging queries from brokers related to “regulated bridging”, “minimum loan amount” and “maximum loan-to-value”. In the final quarter of the year, there was also a noticeable increase in searches for “splitting title deed”, “planning permissions” and “minimum age at application”, suggesting continued diversification of portfolios and income strategies among landlords and investors.
The average bridging loan term remained unchanged at 12 months.
“These figures point to a bridging market that’s become more efficient and more considered,” said Andre Barlett, chief executive and co-founder at Capital B Property Finance. “Rates and completion times are at some of their lowest levels in years, which reflects stronger lender competition and better broker-lender processes.
“At the same time, lower average LTVs show a continued focus on sensible risk. The growth in regulated refinances and re-bridging tells us borrowers are using bridging more strategically, not just as a last resort. Overall, it feels like a more mature, outcome-driven market.”
Shane Chawatama, sales director at Knowledge Bank, added: “The increase in searches around planning permission and splitting title deeds is a strong signal that property investors are becoming more creative and strategic with their portfolios.
“Rather than stepping back, advisers are clearly working through more complex asset structures, value-add opportunities and alternative exit strategies. This sits alongside continued interest in adverse credit criteria, suggesting that while some investors are navigating credit challenges, the focus remains on restructuring and optimisation rather than distress.”
Raphael Benggio (pictured right), bridging director at MT Finance, stated: “It is encouraging to see that investors and landlords seem to be returning to the market.
“November’s Budget wasn’t as disastrous for the property sector as many feared and instead it has largely been a case of business as usual.
“There is a lot of liquidity and lenders certainly seem to be competitive with their rates, which is great news for borrowers. It is also encouraging to see the downward trajectory of average completion times which shows how useful bridging is for those facing tight deadlines.”
Bridging Trends aggregates completion data from a panel of specialist finance packagers active in the UK bridging market: AFIG, Brightstar Financial, Capital B, Clever Lending, Clifton Private Finance, Complete FS, Enness, Impact Specialist Finance, LDNfinance, Optimum Elite, Sirius Finance and UK Property Finance. Knowledge Bank supplies the broker criteria search statistics.
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