Its latest quarterly Bridging Report found that £181.8m of bridging loans were completed during Q3, a 5% increase on the £173.1m recorded in the previous quarter. However, volumes remained 13.2% lower than the £209.4m transacted in Q3 2025.
Purchasing an investment property was the most common use of bridging finance during the quarter, accounting for 23% of transactions, up from 18% in Q2. Furthermore, the proportion of unregulated bridging loans rose from 52% to 55%.
Fergus Allen, head of bridging at Clifton Private Finance, said the figures highlighted a market increasingly orienteered toward investment-led financing. He also said increased competition between lenders had accelerated completions.
“Lenders appear to be completing transactions more quickly. Whether this is due to sustainable market growth or increased competition between lenders is up for debate – my opinion is it’s most likely the latter,” added Allen.
The report found a growing share of first charge bridging loans, which increased from 78% of transactions in Q2 to 87% in Q3. However, second charge bridging fell from 22% to 13% over the same period.
Your First Home: confidence to build
Sponsored by Halifax Intermediaries
Average loan-to-value (LTV) ratios rose from 55% to 59% between Q2 and Q3. But overall average monthly interest rates fell for a fourth consecutive quarter, declining from 0.81% to 0.77%.
Raphael Benggio, bridging director at MT Finance, commented: “It is really encouraging to see the drop in both completion times and interest rates. This shows that despite the geopolitical landscape, lenders are continuing to support borrowers, which helps to drive much-needed momentum. The industry is once again showing its resilience as well as its ability to find solutions and get deals over the line.”
