The latest Bridging Trends report shows a strong Q3 performance for the UK’s bridging finance market, with completion times improving, lending volumes rising, and gross lending from contributors hitting £220.8m.
The average completion time decreased to 46 days from 52 days in Q2, marking the fastest rate since 2019.
Investment purchases led bridging loan uses, accounting for 24% of the quarter’s loans—an increase from 18% in Q2.
The demand for both regulated and unregulated refinance also reached record highs, with regulated refinance jumping from 6% to 14% and unregulated refinance from 6% to 13%. Meanwhile, chain-break loans declined, indicating a more stable market.
Chris Oatway, chief executive officer of LDN Finance, noted the sector’s efficiency improvements, saying: “Over the past quarter, we’ve seen a notable improvement in the bridging finance sector, with the average completion time reducing significantly, signalling a more efficient market all round.
“Additionally, lending volumes have increased by 10 per cent, with a marked rise in investors using bridging finance for new acquisitions.”
Shane Chawatama at Knowledge Bank added: “Bridging demand has remained exceptionally popular…we’ve also seen increased interest in second charge bridging and adverse credit, underscoring the market’s focus on flexible bridging options amid ongoing economic uncertainty.”
Gareth Lewis, managing director of MT Finance, concluded: “The reduction in completion times to a five-year low demonstrates a considered approach from all facets of the market to improve operational efficiency.
“This is particularly noteworthy given that we typically see the market soften slightly during the summer months. Instead, we’ve witnessed increased lending volumes and faster turnaround times, indicating a more streamlined process from all parties involved in the bridging transaction chain.
“The rise in investment purchases to 24% of total lending suggests growing confidence among property investors, who are actively seeking opportunities in the current market. These figures paint a picture of a robust and efficient bridging finance sector that continues to meet the evolving needs of borrowers,”
