Bridging finance activity increased in the third quarter of 2025, with total gross lending by Bridging Trends contributors reaching £209.4 million as borrowers sought speed and flexibility amid speculation over the Autumn Budget.
The latest data shows a 4.9% rise in lending compared with £199.7 million in the previous quarter, marking the strongest performance since the third quarter of 2024, when volumes hit £220.8 million. The increase reverses a year-long decline in quarterly totals and points to renewed confidence among property investors.
PURCHASE
Purchasing an investment property was the primary driver of demand, accounting for 20% of all transactions, up from 16% in the second quarter. Many investors appear to have moved early to complete deals before any potential changes to stamp duty.
At the same time, the average completion time fell sharply from 48 to 41 days, underlining the sector’s ability to move swiftly as borrowers sought certainty in an unpredictable market.
RE-BRIDGING
Re-bridging saw the most notable growth, rising from 7% to 12% of total lending. This suggests that slower property sales are prompting some borrowers to extend their finance arrangements while waiting for exits. The shift may also explain the small rise in the average monthly interest rate, which increased from 0.81% to 0.85%.
REFINANCING
By contrast, refinancing activity fell back significantly. Regulated refinances dropped by a third to 12%, while unregulated refinances nearly halved to 6%. With interest rates largely stable over the past year, many borrowers are thought to have already refinanced or are delaying decisions in the hope of a further base rate reduction.
UNREGULATED
Despite the growth in investment-led transactions, the proportion of unregulated loans edged down slightly from 55% to 54%. Data from Knowledge Bank indicated that regulated bridging was the top criteria search among brokers during the quarter, signalling continued interest in the residential side of the market.
SECOND CHARGE BRIDGING
Second-charge bridging accounted for 12% of lending, up from 10%, while the average loan-to-value ratio increased marginally from 54% to 55%. The average loan term remained steady at 12 months.
Bridging Trends collates data from several leading 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. Criteria search data is supplied by Knowledge Bank.
William Lloyd-Hayward (main picture), group chief operating officer and managing director at Sirius Finance, said: “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.”
