Bridging Trends contributors reported £811 million of completed bridging loans in 2025, a 1.4% decline on the £822.2 million recorded in 2024

Average completion times for bridging finance dropped to 43 days in 2025, according to the latest Bridging Trends data, down from 47 days in 2024 and matching the lowest level recorded in 2017.

Bridging Trends contributors reported £811 million of completed bridging loans in 2025, a 1.4% decline on the £822.2 million recorded in 2024. The annual fall was partly driven by a softer final quarter: Q4 2025 volumes totalled £199.9 million, compared with £209.4 million in Q3. The dip follows a pattern seen in previous fourth quarters and may also reflect caution ahead of the November Budget.

Investment purchases were the leading purpose for bridging loans in 2025, accounting for 20% of transactions, up from 19% a year earlier. Heavier refurbishment activity also grew, with heavy refurb loans increasing from 9% of advances in 2024 to 11% in 2025, indicating that landlords and investors are both expanding portfolios and seeking to enhance returns. The shift was mirrored in a modest rise in unregulated bridging, which edged up from 54% to 55% year on year.

Re-bridging saw a more marked change, increasing from 7% of activity in 2024 to 10% in 2025. While the wider housing market has shown signs of stabilising, relatively subdued sales appear to be affecting borrowers whose exit relies on disposing of property.

Pricing also moved lower. The average monthly interest rate dropped from 0.88% in 2024 to 0.84% in 2025. A reduction in average loan-to-value (LTV) ratios – down from 58% to 55% – is likely to have helped, as did a rise in first-charge lending from 86% to 89%. Lender competition on rates intensified over the period, against a backdrop of ample liquidity.

The average bridging loan term remained unchanged at 12 months.

These figures point to a bridging market that’s become more efficient and more considered, said Andre Barlett, chief executive and co-founder at Capital B Property Finance. Rates and completion times are at some of their lowest levels in years, which reflects stronger lender competition and better broker-lender processes.

At the same time, lower average LTVs show a continued focus on sensible risk. The growth in regulated refinances and re-bridging tells us borrowers are using bridging more strategically, not just as a last resort. Overall, it feels like a more mature, outcome-driven market, he added.