"With faster completion times and steady lending volumes, these results show how bridging finance has evolved from an alternative solution to an essential component of the UK property finance landscape."
- Raphael Benggio, head of lending for bridging finance at MT Finance
The UK bridging finance market demonstrated resilience in 2024, maintaining robust lending volumes alongside improved operational efficiency, the latest Bridging Trends data shows.
The average completion time for bridging loans decreased by 23% year-on-year, dropping from 58 days in 2023 to 47 days in 2024, with both lenders and broker introducers demonstrating enhanced operational capabilities and a deeper understanding of the market as bridging becomes more mainstream.
Despite economic uncertainties in 2024 fuelled by the anticipated general election, Budget and other macroeconomic factors, total gross lending stayed relatively consistent at £822.2 million, just 1% below the historic high of £831m recorded in 2023, making it the second-highest lending volume since 2015.
The average monthly interest rate saw a modest increase to 0.88%, up from 0.86% in 2023. While interest rates saw a slight increase, the market maintained a balance between regulated and unregulated lending, indicating favourable market conditions.
Notably, the market witnessed changes in borrowing patterns, with auction purchases increasing from 7% to 11% of total loans, chain-break financing decreasing to 20% from 22%, and re-bridge falling to 7% from 9%. This increase in auction purchases and decrease in chain breaks suggest a growing awareness and utilisation of bridging finance among landlords and investors who are increasingly turning to bridging finance for investment opportunities. The decline in re-bridging transactions signals improved market conditions and borrower confidence, with more borrowers successfully exiting their initial bridging loans.
Average loan-to-value levels held steady at 58% in 2024, up marginally from 57% in 2023, indicating responsible lending practices which suggests borrowers are not over-stretching themselves despite rising interest rates. The average term remained at 12 months for the eighth consecutive year.
Raphael Benggio, head of lending for bridging finance at MT Finance, commented: “The 2024 Bridging Trends data paints a picture of a robust, resilient market that continues to adapt and thrive despite external pressures. With faster completion times and steady lending volumes, these results show how bridging finance has evolved from an alternative solution to an essential component of the UK property finance landscape."
Phil Jay, director at Complete FS, added: "Complete FS experienced a remarkable 60% increase in both regulated and unregulated cases during 2024. This growth reflects the market's increasing demand for rapid completions. As bridging specialists, we've adapted by carefully selecting the right lenders who have not only streamlined their processes but also work with efficient legal partners in order to deliver quick and efficient solutions for our clients."
