Bridging Trends Q2 2025: shows continued stability
The Q2 2025 Bridging Trends report shows a period of resilience and stability, with key indicators pointing to an increasingly competitive and mature sector.
Here’s a breakdown of the key takeaways:
A welcome drop in interest rates
A notable trend this quarter is the decrease in borrowing costs. The average monthly interest rate for bridging loans fell by 0.05%, from 0.86% in Q1 2025 to 0.81% in Q2 2025. This is a continuation of a downward trend from the previous year, highlighting the market’s increasing competitiveness which demonstrates the value of bridging finance as an attractive option.
Application volumes are on the rise
We saw a steady increase in applications, with an 11% rise year-on-year, from 415 in Q2 2024 to 460 in Q2 2025. This growth signals sustained market activity and a healthy appetite for bridging finance solutions.
Stability and shifting loan purposes
Despite the rise in applications, total gross lending remained stable at £199.7 million in Q2 2025 with a marginal 1% decrease from both the previous quarter and the same period last year. We are also seeing a significant shift in the purpose of these loans. Refinance is becoming a major driver of the market. Regulated refinance now accounts for the largest proportion of loans by purpose with a massive 76% increase, while unregulated refinance increased by 63%. Another area of growth is auction purchases, which increased to 13% in Q2 2025. This trend indicates continued demand for bridging finance in the property auction space, where quick completion is essential.
How we can help
As opportunities in the bridging finance market continues to open, MT Finance is positioned to help you take advantage of these opportunities. We offer a range of bridging loan solutions, including those specifically tailored for refinance and auction purchases, ensuring you can capitalise on opportunities as they arise.
Get in touch
If you’d like to find out more about how we can support your client, we can help. You can submit a case enquiry online, via this form, email us at enquiries@mt-finance.com, or speak directly with your BDM.
Meta copy: Specialist lender MT Finance explains the data from Q2 2025 Bridging Trends; a quarterly index which monitors the trends in short-term UK bridging lending. Find out more >>
Bridging Trends combines bridging loan completions from several specialist finance packagers operating within the UK bridging market: AFIG, Brightstar Financial, Capital B, Clever Lending, Clifton Private Finance, Complete FS, Enness, Impact Specialist Finance, LDNfinance, Optimum Commercial, Sirius Group, and UK Property Finance. The data for top broker criteria searches is supplied by Knowledge Bank
