According to MT Finance’s Bridging Trends data, this was shorter than the typical wait of 47 days in 2024. The report suggested that the increased use of technology, efficiency and brokers having a better understanding of how to place a case collectively helped speed up the process.
In 2025, £811m of bridging loans were transacted by the report’s contributors, a 1.4% fall on the previous year’s figure of £822.2m.
MT Finance said this could be because of weaker activity in Q4 2025, when £199.9m transactions were completed, down on the previous quarter’s £209.4m.
The lender said this drop in activity mirrored the trends of previous years but could have also been impacted by the caution before the Autumn Budget in November.
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Bridging for investment
Bridging loans were mainly used to fund investment purchases last year, accounting for a fifth of transactions and up from 19% the year before.
In addition to the rise in heavy refurbishment loans, which rose from 9% to 11% year-on-year, MT Finance said there were signs of landlords and investors entering the market and expanding their portfolios, as well as maximising their return on investment.
The lender said the return of landlords could also be seen in the slight rise in unregulated bridging, which increased from 54% in 2024 to 55% in 2025.
There was an increase in the share of rebridges, from 7% to 10%, but sales remained flat. MT Finance said the flat sales could have an impact on the exit strategy of investors who planned to sell up.
The average monthly interest rate of a bridging loan fell from 0.88% in 2024 to 0.84% in 2025, while the average loan to value (LTV) dropped from 58% to 55%, and MT Finance said the lower interest rates could have contributed to the lower average LTVs.
This could have also been influenced by the rise in first charge lending, which increased from 86% to 89% year-on-year, driving competition among lenders.
According to Knowledge Bank, the top criteria searches made by bridging finance brokers last year were for ‘regulated bridging’, ‘minimum loan amount’ and ‘maximum loan to value’.
There was also an increase in searches relating to ‘splitting title deed’, ‘planning permissions’ and ‘minimum age at application’ in the final quarter of 2025.
The average term for a bridging loan remained at 12 months.
Investors show strategy in an efficient bridging market
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, LDN Finance, Optimum Elite, Sirius Finance and UK Property Finance. The data for top broker criteria searches is supplied by Knowledge Bank.
Andre Barlett, CEO and co-founder of Capital B Property Finance, said the figures pointed to a bridging market that was more “efficient and measured”.
He added: “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 rebridging 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.
“This sits alongside continued interest in adverse credit criteria, suggesting that while some investors are navigating credit challenges, the focus remains on restructuring and optimisation rather than distress. For lenders, this underlines a growing opportunity to support sophisticated, criteria-led transactions where clarity and flexibility are just as important as price.”
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. It is also encouraging to see the downward trajectory of average completion times, which shows how useful bridging is for those facing tight deadlines.”
