The bridging finance sector in the UK has marked a notable improvement in the third quarter of 2024, reflecting both increased lending and improved completion times.
- Completion times for bridging loans have decreased significantly, achieving the fastest rates seen since 2019, with an average of 46 days compared to 52 days in the previous quarter.
- There has been a remarkable growth in lending volume, surging to £220.8m, driven primarily by investment purchases which now constitute 24% of the loans.
- Regulated and unregulated refinance demands have surged, demonstrating an increasingly stable and confident market, with regulated refinance jumping to 14% from 6% previously.
- The overall efficiency of the bridging market signifies strategic improvements, with insights from key industry figures highlighting the sector’s adaptability and resilience.
The bridging finance market in the UK has reported substantial improvements for Q3 2024. This year has seen a remarkable decrease in the time required to complete bridging loans, with current figures showing an average of 46 days compared to 52 days in the earlier quarter. These metrics highlight the sector’s commitment to operational efficiency, marking the fastest completion rates since 2019.
An increase in lending volume further underscores the sector’s robust performance, with contributions totalling £220.8 million. A significant portion of this lending activity has been driven by investment purchases, which have risen to 24% from the previous 18% in Q2. This increase reflects growing confidence among property investors who are actively engaging in the market.
In tandem with the rise in lending, there is a significant increase in demand for both regulated and unregulated refinancing options. The figures for regulated refinance have increased notably from 6% to 14%, while unregulated refinance has risen from 6% to 13%. These trends point to a market that is stabilising, as borrowers increasingly seek refinancing as a viable option.
The decline in chain-break loans suggests a more solidified market environment, with the bridging sector displaying notable adaptability and resilience. This adaptability is further emphasised by the comments of industry experts who note the focus on reducing completion times and increasing loan volumes. The strategic efforts to streamline processes are evident in the market’s current dynamics.
Industry leaders have voiced positive feedback on these advancements. Chris Oatway of LDN Finance remarked on the improved efficiency, highlighting a more efficient market. Shane Chawatama from Knowledge Bank pointed out the sustained popularity of bridging loans, with a particular interest in second charge bridging and adverse credit solutions. Gareth Lewis of MT Finance mentioned the significance of reduced completion times and increased lending volumes, describing the market’s streamlined operations.
The bridging finance market’s notable progress in Q3 2024 reflects its enhanced efficiency and strategic flexibility, meeting the evolving needs of borrowers.
