Investors are increasingly using bridging finance to complete purchases and secure auctioned properties.
That is according to the latest data analysis from specialist lender Octane Capital, which outlines how bridging is being used over time.
In 23% of cases bridging was used to complete investment purchases in the first quarter of 2025, marking a dramatic rise from just 13% in the fourth quarter of 2024, as well as a minor increase from 21% in Q1 2024.
The second most popular use of the finance was for a classic chain break situation (17%), where borrowers use a bridge to purchase a new home while waiting for the sale of their current property to be confirmed.
The third most popular was for an auction purchase (12%), outlining how investors are increasingly using the finance to facilitate new investments, rather than refinance existing properties.
Bridging boom eases off
While bridging lending has boomed across the UK, total lending fell back by -0.7% in the first quarter of 2025, from £203.5m in Q4 2024 to £202.0m in Q1 2025.
Activity is still 3% up year-on-year, as lending stood at £196.2m in Q1 2024. And looking further back, lending was a fraction of the current totals in Q1 2020, when it stood at £122.9m for the quarter.
This points to a sector where activity is steadily increasing over time.
Efficiency improving
Application processing times are continuing to shorten across the industry, signifying that processes are becoming increasingly efficient.
In the first quarter of 2025 it took just 32 days to take an average application from start to finish, down from 39 days in Q4, and 58 in the first quarter of 2025.
CEO of Octane Capital, Jonathan Samuels, commented:
“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.”
