Short-term finance is surging, giving brokers new possibilities
Bridging finance has surpassed £10 billion in total loan book value for the first time, according to the latest figures from the Bridging & Development Lenders Association (BDLA).
With completions surging 28.6% in the fourth quarter of 2024, brokers are seeing more opportunities to secure flexible financing for clients navigating time-sensitive property deals.
Figures audited from BDLA member submissions show bridging loan completions rose to £2.3 billion in the fourth quarter of 2024, contributing to a 14.4% rise in overall loan books, now standing at £10.30 billion. Pipeline activity also showed steady progress, with applications increasing by 3.9% to reach £11.3 billion.
This compares favourably to data released in November last year. At that point, the total value of bridging completions stood at £1.79 billion – representing a then quarterly increase of 2.9% and an annual leap of 27.9%. According to an analysis of that data by Excellion Capital, the leading purpose for bridging loans was investment purchases at 24%. Meanwhile, 17% were issued for chain breaks and 14% went towards regulated refinance.
The fact that the market has continued to grow at a rapid pace is largely down to mortgage brokers spotting the potential of the product, according to the BDLA’s chief executive Vic Jannels (pictured). “The latest BDLA lending data confirms that bridging and development finance is reaching new heights, with record-breaking figures across completions and loan book sizes,” he said. “This continued growth reflects the increasing recognition among brokers and borrowers of the many advantages that flexible, short-term property finance can offer.”
As demand for bridging finance grows, Jannels noted that BDLA membership is also on the rise.
“We are committed to supporting sustainable growth by working with lenders to uphold responsible underwriting, combat fraud, and promote professional development through initiatives such as the Certified Practitioner in Specialist Property Finance (CPSP) accreditation,” he said.
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