The latest Bridging Trends data shows that the UK bridging finance market remained resilient in 2024, maintaining steady lending volumes while significantly improving efficiency.
The average completion time for bridging loans dropped by 23% year-on-year, from 58 days in 2023 to 47 days in 2024. This reduction highlights the increasing maturity of the sector, with lenders and brokers streamlining processes as bridging finance becomes more mainstream.
Total gross lending stood at £822.2m, just 1% below the record £831m in 2023, marking the second-highest lending volume since 2015. The average monthly interest rate edged up slightly to 0.88% from 0.86% in 2023, reflecting a measured adjustment to macroeconomic conditions.
Borrowing patterns shifted, with auction purchases rising from 7% to 11% of total loans, while chain-break financing fell from 22% to 20%. Re-bridging transactions declined from 9% to 7%, suggesting improved market confidence and more borrowers successfully exiting their initial bridging loans.
Regulated bridging remained the most searched criterion among brokers, according to data from Knowledge Bank, reinforcing its importance for borrowers. Loan-to-value levels remained stable at 58%, slightly up from 57% in 2023, indicating responsible lending practices. The average loan term remained at 12 months for the eighth consecutive year.
Raphael Benggio, head of lending – bridging finance at MT Finance, said: “The 2024 Bridging Trends data paints a picture of a robust, resilient market that continues to adapt and thrive despite external pressures. With faster completion times and steady lending volumes, these results show how bridging finance has evolved from an alternative solution to an essential component of the UK property finance landscape.”
Phil Jay, director at Complete FS, added: “Complete FS experienced a remarkable 60% increase in both regulated and unregulated cases during 2024. This growth reflects the market’s increasing demand for rapid completions. As bridging specialists, we’ve adapted by carefully selecting the right lenders who have not only streamlined their processes but also work with efficient legal partners in order to deliver quick and efficient solutions for our clients.”
