Bridging finance is being used more by investors to complete purchases and secure auctioned properties, according to data from Octane Capital.
In Q1 2025, 23% of bridging loans went towards investment purchases, up from 13% in Q4 2024 and slightly higher than the 21% seen in Q1 2024.
The second most common use was for chain break situations, at 17%, where borrowers use bridging to buy a new home while waiting to sell their current one.
Auction purchases made up 12% of bridging loan use, showing more investors are using the finance to fund new investments rather than to refinance existing properties.
Total bridging lending across the UK fell by 0.7% in Q1 2025, from £203.5m in Q4 2024 to £202.0m in Q1 2025.
However, lending remained 3% higher than the £196.2m recorded in Q1 2024.
In Q1 2020, lending stood at £122.9m, showing that the sector has grown over time.
Application processing times have also improved.
In Q1 2025, it took 32 days on average to complete an application, compared to 39 days in Q4 2024 and 58 days in Q1 2024.
Jonathan Samuels, CEO at Octane Capital, said: “More investors are waking up to the modern uses of bridging finance, which can be an effective tool in snapping up an investment property.
“Maybe you need the finance to secure a quick purchase before a competitor swoops in, or perhaps it’s about using the funds to refurbish the property before refinancing with a buy-to-let loan.
“Either way, the industry is increasingly set up to meet investors’ needs, which is demonstrated by the shorter processing times when it comes to taking applications to completion.”
