Total gross bridging lending came to £822m in 2024, just beneath the record of £831m in 2023, a report has found.
According to MT Finance’s Bridging Trends report, this is the second-highest gross bridging lending figure since 2015.
The average monthly interest rate for bridging rose slightly to 0.88% in 2024, up from 0.86% in 2023.
MT Finance said this “reflects a measured adjustment to the broader economic environment while maintaining competitive pricing for borrowers”.
The report found that the balance between regulated and unregulated bridging lending had been maintained, which showed “favourable market conditions”.
Auction purchases rose in popularity from 7% in 2023 to 11% of total loans in 2024.
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Chain break financing fell from 22% in 2023 to 20% of total loans in 2024, while rebridges decreased from 9% to 7% of total loans over the same period.
The report explained: “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 rebridging transactions signals improved market conditions and borrower confidence, with more borrowers successfully exiting their initial bridging loans.”
Average loan to values (LTVs) stood at 58% in 2024, a slight rise from 57% in the prior year, showing “responsible lending practices, which suggests borrowers are not overstretching themselves despite rising interest rates”.
The average term stayed at 12 months for the eighth consecutive year, showing “consistent market expectations”.
The average completion time dropped 23% year-on-year to 58 days, showing “increasing maturity of the bridging finance sector, with both lenders and broker introducers demonstrating enhanced operational capabilities and a deeper understanding of the market as bridging becomes more mainstream”.
Raphael Benggio, head of lending for bridging finance at MT Finance, said the data “paints a picture of a robust, resilient market that continues to adapt and thrive despite external pressures”.
He continued: “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, said the firm has seen a 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,” he added.
