According to the latest Bridging Trends report from MT Finance, Q1 2025’s figures are also in line with the Q4 2024 figures of £203.5m.
The report said the bridging market had shown “remarkable resilience” during the period, as despite a heightened volume of applications, the average completion time had fallen to 32 days.
This is a fall of seven days from the prior quarter and the best recorded since the reports started in 2015. This showed “increased competency in processing loans and a more efficient lending environment”.
The average term remained at 12 months, with the average loan to value (LTV) estimated at 55.4%.
The average monthly interest rate came to 0.86%, which is a slight fall from 0.897% in the prior quarter.
Grasping the next buy to let opportunities
Sponsored by Aldermore
Approximately 89% of deals were on a first charge basis and 11% were on a second charge basis, similar to the prior quarter.
Looking at reasons for securing bridging finance, investment purchase topped the chart at 23%, an improvement from 12% in Q4 2024.
The report said this suggests a “strong response to the stamp duty concession” ahead of the changes going ahead in April.
This was followed by chain break at 17%, a drop from 20% in the prior quarter, and auction purchase at 12%, which is slightly down from 13%.
Bridging market shows ‘remarkable… stability’
Raphael Benggio, director of bridging at MT Finance, said the report “shows remarkable market stability”.
He continued: “The uptick in investment purchases, from 13% to 23%, suggests a strong link to stamp duty considerations, demonstrating borrowers’ keen awareness of these opportunities.
“The resultant decrease in completion time, where a surge in activity could have potentially strained processing times, represents the sector’s enhanced efficiency, showing how quickly lenders can support the market. We expect continued sector stability and favourable market conditions throughout 2025.”
Benjamin Peace, bridging and development finance specialist at Brightstar Financial, said bridging finance has “continued to evolve”, pointing to the improvement in average completion times.
“Despite an increase in applications, average completion times dropped by a full week – from 39 to 32 days – the fastest since Bridging Trends began tracking the data in 2015. This progress reflects sharper underwriting, greater lender agility, and a broader shift toward a more efficient, borrower-focused market,” he said.
