The UK bridging finance market continues to expand rapidly, with analysts forecasting total lending volumes of £12.2 billion in 2025. After surpassing £10 billion last year, the sector is now solidifying its position as a key mechanism for short-term property funding.
The main drivers behind this growth include an increasing number of chain-break transactions, where home-buyers rely on bridging loans to complete purchases while awaiting other deals. Investors and developers also favour these loans due to their speed and flexibility — enabling fast acquisitions, auction purchases, and renovation projects.
Industry experts note that securitisation could soon open the next chapter for bridging loans, allowing lenders to package and sell them as asset-backed securities, attracting institutional capital and further liquidity.
However, despite strong growth, borrowers should remain aware of the higher risks and costs compared with traditional mortgages. Average rates currently start from 0.55% per month, varying with property type and LTV. Furthermore, Q2 2025 data from the Bridging & Development Lending Association (BDLA) indicated an 8.9% quarterly slowdown, suggesting the market is stabilising after its record highs.
For investors and property professionals, bridging loans remain a strategic financial tool — ideal for time-sensitive opportunities but requiring a clear exit strategy such as sale or refinance. As the market matures, those who act with discipline and proper risk management stand to benefit most from this evolving asset class.