The average time taken to complete a bridging loan fell to 43 days in 2025, its lowest level since 2017, according to new market data.
Figures from the latest Bridging Trends report show completion times have now fallen for the third year in a row, down from 47 days in 2024, as brokers and lenders continue to streamline processes and borrowers place renewed emphasis on speed.
The improvement comes despite a slight softening in overall lending volumes. Bridging Trends contributors completed £811 million of gross lending in 2025, down 1.4% on the £822.2 million recorded in 2024.
A quieter final quarter, which saw £199.9 million in transactions compared with £209.4 million in Q3, may have reflected caution ahead of November’s Budget.
Investment purchases remained the most common use of bridging finance, accounting for 20% of all completions, up from 19% a year earlier. Heavy refurbishment loans also increased, rising from nine% to 11%, suggesting landlords and investors are returning to the market and focusing on value-add strategies.
This trend was reflected in a modest rise in unregulated bridging, which edged up from 54% to 55%, alongside a notable increase in re-bridging activity. Re-bridges accounted for ten% of lending in 2025, up from 7% in 2024, as slower sales markets continued to affect exit strategies based on disposal.
Pricing conditions also improved. The average monthly interest rate fell from 0.88% to 0.84%, supported by lower average loan-to-value ratios, which declined from 58% to 55%. First charge lending increased from 86% to 89%, further influencing pricing dynamics.
Search data from Knowledge Bank shows brokers most frequently sought criteria relating to regulated bridging, minimum loan amounts and maximum loan-to-value in 2025. Increased searches for planning permissions, title splitting and minimum age requirements in Q4 point to more complex and structured transactions.
The average term of a bridging loan remained unchanged at 12 months.
Andre Barlett, CEO and co-founder at Capital B Property Finance, said: “These figures point to a bridging market that’s become more efficient and more considered. 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.”
Shane Chawatama, sales director at Knowledge Bank, said: “The increase in searches around planning permission and splitting title deeds is a strong signal that property investors are becoming more creative and strategic with their portfolios.
“Rather than stepping back, advisers are clearly working through more complex asset structures, value-add opportunities and alternative exit strategies.”
Raphael Benggio, bridging director at MT Finance, said: “It is encouraging to see that investors and landlords seem to be returning to the market.
“November’s Budget wasn’t as disastrous for the property sector as many feared and instead it has largely been a case of business as usual.
“There is a lot of liquidity and lenders certainly seem to be competitive with their rates, which is great news for borrowers.”
