Demand for bridging finance rose in Q3 2025, with contributor gross lending coming in at £209.4m as borrowers prioritised speed and flexibility amid uncertainty around the upcoming Budget.
Key Points for Q3 2025:
- Contributor gross lending up 4.9 per cent
- Average completion time drops to 41 days
- Purchasing an investment property drives demand
Bridging Trends contributors transacted £209.4 million in bridging loans in Q3 2025, a 4.9 per cent increase on Q2’s £199.7m. This is the highest quarterly figure since Q3 2024’s £220.8m and reverses the downward trend which saw quarterly totals fall since this time last year.
Funding an investment purchase accounted for 20 per cent of all transactions, up from 16 per cent in Q2. The uncertainty around the upcoming Autumn Budget – and speculation that Stamp Duty could be increased – likely influenced landlords to look for fast, flexible finance options. The need to move quickly was also reflected in the average completion time, which fell from 48 days in Q2 to 41 days in Q3.
Re-bridges saw the biggest increase in Q3 – jumping from 7 per cent in Q2 to 12 per cent – which could be due to a slower property market, resulting in borrowers with a resale exit strategy finding it harder to redeem their bridging loans. This may have been why the average monthly interest rate increased from 0.81 per cent in Q2 to 0.85 per cent in Q3.
However, bridging loans used to refinance a property saw the biggest drop, with regulated refinance decreasing by a third, falling from 18 per cent in Q2 to 12 per cent in Q3. Unregulated refinance nearly halved, dipping from 11 per cent in Q2 to 6 per cent in Q3. That interest rates have been relatively stable over the last year may mean that a number of refinances have already taken place, while other borrowers are likely holding out in case there is another base rate drop before committing.
Despite the increase in bridging loans funding an investment purchase, the proportion of unregulated bridging loans fell marginally from 55 per cent in Q2 to 54 per cent in Q3. Data provided by Knowledge Bank also revealed a demand for regulated bridging with it coming in as the top criteria search made by UK bridging finance brokers in Q3.
The percentage of second charge bridging loans rose slightly from 10 per cent in Q2 to 12 per cent in Q3. The average loan-to-value rose fractionally from 54 per cent in Q2 to 55 per cent in Q3. Elsewhere, the average term remained at 12 months.
Bridging Trends combines bridging loan completions from several specialist finance packagers operating within the UK bridging market: AFIG, Brightstar Financial, Capital B, Clever Lending, Clifton Private Finance, Complete FS, Enness, Impact Specialist Finance, LDNfinance, Optimum Commercial, Sirius Finance and UK Property Finance. The data for top broker criteria searches is supplied by Knowledge Bank.
William Lloyd-Hayward, Group COO & MD at Sirius Finance, comments:
“This latest Bridging Trends data is a great example of the versatility of bridging finance, regardless of the broader property market conditions. The significant increase in re-bridging - rising from 7 to 12 per cent - shows how borrowers are turning to short-term finance to maintain liquidity in a slower sales environment. At the same time, the growth in transactions funding investment purchases, up from 16 to 20 per cent, shows that investors are spotting value in the current market and using bridging as a means of moving quickly on opportunities. It’s a clear demonstration of the dual role bridging plays - supporting both those needing breathing space and those ready to act decisively. And it’s a clear message to brokers about the importance of having bridging as part of your toolbox.”
Raphael Benggio, Bridging Director at MT Finance, comments:
“Considering the uncertainty that the market is going through, including whether base rate will come down any further and waiting for the Budget outcome, it’s clear that bridging finance remains an important tool for borrowers looking for specialist finance. It is great to see lenders servicing clients quickly and that the average completion time has fallen by a week.”
To view the Bridging Trends Q3 2025 infographic, please visit www.bridgingtrends.com
