Bridging loans completed in an average of 43 days in 2025, marking the fastest turnaround since 2017, according to new industry data.
The latest Bridging Trends figures reveal that completion times continued to improve throughout 2025, falling from 47 days the previous year as lenders, brokers and borrowers benefited from more efficient processes and clearer expectations.
Total gross lending across contributing firms reached £811 million, a modest decline on 2024 levels. The dip appears to have been driven largely by a softer final quarter, when transaction volumes fell below Q3 levels amid pre-Budget uncertainty.
Despite this, the underlying composition of the market points to renewed confidence among investors. Funding investment purchases remained the dominant use of bridging finance, rising to 20% of total lending, while heavy refurbishment loans also increased to 11%.
The data suggests landlords are becoming more active again, both in expanding portfolios and in restructuring existing holdings. Unregulated bridging accounted for 55% of completions, up slightly year on year, while re-bridging activity rose sharply as exit timelines lengthened in a slower sales environment.
Borrowing costs eased over the year, with the average monthly rate falling to 0.84%. Lower loan-to-value ratios and a greater proportion of first charge lending contributed to the reduction, alongside continued competition between lenders.
Broker behaviour also shifted. Knowledge Bank data shows sustained demand for regulated bridging criteria, alongside growing interest in planning-related searches and title splitting, particularly in the final quarter of the year.
Andre Barlett, CEO and co-founder at Capital B Property Finance, says: “These figures point to a bridging market that’s become more efficient and more considered.
“The growth in regulated refinances and re-bridging tells us borrowers are using bridging more strategically, not just as a last resort.”
Shane Chawatama, sales director at Knowledge Bank, says: “Advisers are clearly working through more complex asset structures, value-add opportunities and alternative exit strategies.
“For lenders, this underlines a growing opportunity to support sophisticated, criteria-led transactions.”
Raphael Benggio, bridging director at MT Finance, says: “There is a lot of liquidity and lenders certainly seem to be competitive with their rates, which is great news for borrowers.
“It is also encouraging to see the downward trajectory of average completion times, which shows how useful bridging is for those facing tight deadlines.”
The average term of a bridging loan remained at 12 months throughout 2025.
