Will the market maintain its momentum through the year's end?
The UK bridging finance market delivered a robust third quarter in 2024, with key metrics from the latest Bridging Trends showing faster completion times, increased lending volumes, and strong demand for refinancing.
Average completion times dropped to 46 days in Q3 2024 – the fastest since Q2 2019 – from 52 days in the previous quarter. This quicker turnaround came alongside a 9% rise in gross lending, up from £201.8 million in Q2 to £220.8 million in Q3, suggesting sustained growth even during the typically slower summer months.
“The average completion time reducing significantly signals a more efficient market all round,” said Chris Oatway (pictured left), chief executive of LDN Finance. “Lending volumes have increased, with more investors using bridging finance for new acquisitions. Looking ahead, we expect continued momentum as confidence in the market strengthens.”
Investment purchases accounted for the largest share of bridging loan uses in Q3, climbing from 18% in Q2 to 24%.
“The rise in investment purchases to 24% of total lending suggests growing confidence among property investors,” noted Gareth Lewis (pictured centre), managing director at MT Finance. “These figures illustrate a robust and efficient bridging finance sector meeting borrowers’ evolving needs.”
Demand for both regulated and unregulated refinance also saw substantial growth. Regulated refinance jumped from 6% to 14% of the market, while unregulated refinance rose from 6% to 13%. The drop in chain-break loans suggests a more stable property market, with fewer disruptions impacting transactions.
According to Knowledge Bank, regulated bridging remained the most-searched criterion among brokers, highlighting the continued importance of this funding option for borrowers. First charge loans increased from 88.4% in Q2 to 91% in Q3, while second charge loans dropped to 8%. The average loan-to-value (LTV) ratio edged down slightly, from 59.3% in Q2 to 56.8%, while average loan terms remained steady at 12 months for the 12th consecutive quarter.
“Regulated bridging, minimum loan amount, and maximum LTV remain the top searches,” said Shane Chawatama (pictured right), sales director at Knowledge Bank. “Increased interest in second charge bridging and adverse credit options reflects the market’s focus on flexibility amid ongoing economic uncertainty,” he said.
The Bridging Trends data is based on completions from several 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. Knowledge Bank provided data on top broker criteria searches.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
