Demand for bridging finance rose in Q3 2025 as borrowers prioritised speed and flexibility amid uncertainty around the upcoming Budget.
Bridging Trends contributors transacted £209.4 million in bridging loans in Q3, a 4.9% increase on Q2. This is the highest quarterly figure since Q3 2024 and reverses the downward trend which saw quarterly totals fall since this time last year.
Funding an investment purchase accounted for 20% of all transactions, up from 16% in Q2. 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% in Q2 to 12% – 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% in Q2 to 0.85% in Q3.
However, bridging loans used to refinance a property saw the biggest drop, with regulated refinance decreasing by a third, falling from 18% in Q2 to 12% in Q3. Unregulated refinance nearly halved, dipping from 11% in Q2 to 6% 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% in Q2 to 54% in Q3. D
The percentage of second charge bridging loans rose slightly from 10% in Q2 to 12% in Q3. The average LTV rose fractionally from 54% in Q2 to 55% in Q3.
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.
William Lloyd-Hayward, group COO and MD at Sirius Finance, commented: “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% - 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%, 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, added: “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.”
