"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"
- William Lloyd-Hayward - Sirius Finance
Demand for bridging finance strengthened in Q3 2025, with total contributor gross lending reaching £209.4 million as borrowers turned to fast, flexible funding options amid uncertainty ahead of the Autumn Budget.
Key points for Q3 2025:
Contributor gross lending up 4.9% quarter-on-quarter
Average completion time reduced to 41 days
Investment property purchases drove demand
Bridging Trends contributors recorded £209.4 million in lending during the third quarter, a 4.9% rise from £199.7 million in Q2. This marks the highest quarterly total since Q3 2024’s £220.8 million and reverses a year-long downward trend.
Funding for investment property purchases accounted for 20% of all transactions, up from 16% in Q2. Speculation over possible Stamp Duty increases in the forthcoming Budget appears to have encouraged landlords to act quickly, with the average completion time dropping from 48 to 41 days.
Re-bridges saw the largest increase, rising from 7% in Q2 to 12% in Q3. This trend may reflect a slower property market, where borrowers relying on resale exits are finding it harder to redeem loans. The average monthly interest rate also rose slightly, from 0.81% in Q2 to 0.85% in Q3.
Meanwhile, the proportion of bridging loans used for refinancing fell sharply. Regulated refinance dropped from 18% to 12%, while unregulated refinance declined from 11% to 6%. With interest rates remaining relatively steady over the past year, many borrowers may have already refinanced, while others are waiting to see if a base rate cut materialises before proceeding.
Despite more lending for investment purchases, unregulated bridging loans made up 54% of total activity, a marginal decline from 55% in Q2. Data from Knowledge Bank showed that regulated bridging topped brokers’ search criteria in Q3, signalling continued interest in this segment.
Second charge bridging loans accounted for 12% of the total, up from 10% in the previous quarter. The average loan-to-value (LTV) ratio increased slightly from 54% to 55%, while the average loan term remained at 12 months.
Bridging Trends aggregates completion data from a range of specialist finance packagers, including 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. Knowledge Bank provides broker search data.
“This latest Bridging Trends data is a great example of the versatility of bridging finance, regardless of the broader property market conditions,” said William Lloyd-Hayward, group COO and managing director at Sirius Finance. “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.”
“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,” commented Raphael Benggio, bridging director at MT Finance. “It is great to see lenders servicing clients quickly and that the average completion time has fallen by a week.”
