The latest Bridging Trends data from MT Finance reveals the UK bridging finance market showed robust lending volumes while significantly improving operational efficiency.
The average completion time for bridging loans decreased by 23% year-on-year, dropping from 58 days in 2023 to 47 days in 2024.
This reduction reflected the increasing maturity of the bridging finance sector, with both lenders and broker introducers demonstrating enhanced operational capabilities.
Despite economic uncertainties in 2024 fuelled by the anticipated general election, Budget and other macroeconomic factors, the bridging finance market showed remarkable resilience.
Total gross lending stayed relatively consistent at £822.2m, 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. This reflectecd a measured adjustment to the broader economic environment while maintaining competitive pricing for borrowers.
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, according to the report, suggested a growing awareness and utilisation of bridging finance among landlords with investors increasingly turning to bridging finance for investment opportunities.
While decline in re-bridging transactions signalled improved market conditions and borrower confidence, with more borrowers successfully exiting their initial bridging loans.
MT Finance head of lending bridging finance Raphael Benggio 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.”
