Bridging market sets a new benchmark for speed in Q1

The latest Bridging Trends data reveals bridging loan activity has remained relatively stable in the first quarter of 2025. Contributors recorded total gross lending of £202 million with faster completion times despite increased volumes, and a notable rise in investment purchases.

The data shows that applications increased slightly from the previous quarter. Despite the increased volume, the average completion time decreased significantly by seven days, from 39 days in Q4 2024 to 32 days in Q1 2025 – the lowest it has been since Bridging Trends launched in 2015, demonstrating a more efficient lending environment.

The market recorded a significant increase in investment purchases, rising from 13% in Q4 2024 to 23% in Q1 2025. Investment purchases now account for the largest portion of loan purposes in Q1 2025, suggesting a strong response to the stamp duty concession ahead of the March 31st deadline.

Heavy refurbishment was the second most popular purpose for obtaining bridging finance in Q1, rising to 11% from 9% in the previous quarter and climbing to 8th position on the search criteria from 14th in Q4. Re-bridge loans also saw a modest rise from 8% to 10%, indicating borrowers’ optimism about favourable market conditions and willingness to service their loans for another 12 months.

Additionally, the average LTV came in at 55.4% in Q1, dropping slightly from 55.7% in Q4. 

Data provided by Knowledge Bank revealed a demand for regulated bridging as it remained the top criteria search made by UK bridging finance brokers in Q1.

Raphael Benggio, director of bridging at MT Finance, commented: “The Bridging Trends Q1 2025 data shows remarkable market stability. 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, bridging and development finance specialist at Brightstar Financial, said: "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 – from 39 to 32 days – the fastest since Bridging Trends began tracking the data in 2015. This progress reflects sharper underwriting, greater lender agility, and a broader shift toward a more efficient, borrower-focused market."

Shane Chawatama, sales director at Knowledge Bank, added: "The significant rise in interest for ‘lend against land property’ climbing to 7th in Q1 2025 from 22nd in Q4 2024, alongside development bridging entering the top 10, suggests increasing appetite for early-stage and land-based development. Similarly, interest in ‘new build flats/apartments’ surged upwards, jumping to 38th from 99th. With the race towards the stamp duty Q1 deadline, this may point to brokers fast-tracking certain cases to capitalize on potential savings, which highlights the versatility of the bridging market."