Bridging finance is increasingly being used by property investors to secure purchases and act quickly in a competitive market, new data from Octane Capital has revealed.

According to the specialist lender’s latest analysis, 23% of all bridging cases in the first quarter of 2025 were used to complete investment purchases. This marks a notable rise from 13% in the final quarter of 2024 and is also up slightly on the 21% recorded during the same period last year.

The figures point to a shift in how bridging loans are being deployed, with the second most common use in Q1 2025 being to navigate a break in the property chain (17%), followed by auction purchases (12%).

COOLING

Although the sector has seen significant growth in recent years, lending activity cooled slightly at the start of 2025. Total lending fell by 0.7% to £202.0m in Q1, down from £203.5m in Q4 2024.

However, lending remains 3% higher than it was a year ago, when it stood at £196.2m, and continues to trend well above pre-pandemic levels. In Q1 2020, lending totalled just £122.9m.

The data indicates a longer-term trajectory of sustained growth, despite short-term fluctuations.

PROCESSING SPEEDS

In parallel with the rise in demand for bridging loans, the speed at which lenders process applications is also improving. The average time from application to completion fell to 32 days in Q1 2025, down from 39 days in the previous quarter and a marked improvement on the 58-day average recorded in early 2024. This efficiency is likely to bolster further demand, particularly among investors looking to move quickly on acquisitions.

Jonathan Samuels, chief executive of Octane Capital, said the figures reflect a growing understanding of bridging’s potential as a flexible funding solution.

“More investors are waking up to the modern uses of bridging finance, which can be an effective tool in snapping up an investment property,” he said.

“Maybe you need the finance to secure a quick purchase before a competitor swoops in, or perhaps it’s about using the funds to refurbish the property before refinancing with a buy-to-let loan.

“Either way, the industry is increasingly set up to meet investors’ needs, which is demonstrated by the shorter processing times when it comes to taking applications to completion.”