Contributors lent a total of £181.8 million in bridging loans in Q3, up 5% from the previous quarter’s £173.1m, according to the latest Bridging Trends report from MT Finance. However, this is 13.2% below Q3 2025’s £209.4m.
The proportion of unregulated bridging loans dropped from 59% in Q1 to 52% in Q2 but rose again in Q3 to 55%.
Purchasing an investment asset was the most popular use of a bridging loan in Q3, accounting for 23% of transactions, up from 18% in Q2.
The focus on purchases was also reflected in the rise in first-charge bridges, which increased from 78% in Q2 to 87% in Q3.
Second-charge bridges fell from 22% in Q2 to 13% in Q3, as did heavy-refurb bridges, which fell from 10% in Q2 to 6% in Q3 as building costs remained high.
There was still demand for development bridging though, with Knowledge Bank reporting that it saw the biggest uplift among search terms made by brokers in Q3. It was followed by ‘defaults over £500’ and ‘properties purchased at auction’.
The average loan-to-value rose from 55% in Q2 to 59% in Q3, but the average monthly interest rate fell from 0.81% in Q2 to 0.77% in Q3, demonstrating the liquidity in the market and the competitive conditions for lenders.
Average completion time fell from 46 days in Q2 to 41 in Q3 as processes became increasingly streamlined and lenders worked to meet their clients’ deadlines. The average term remained at 12 months.
Jordan McBriar, CEO at Adapt Finance Group, said: “These trends are so typical of the market currently, almost one positive to every negative, but the fact remains that bridging is the perfect tool for making transactions happen. It feels as if confidence is creeping back in and there is a want to make things work, albeit with some challenges.
Raphael Benggio, bridging director at MT Finance, said: “It is really encouraging to see the drop in both completion times and interest rates. This shows that despite the geopolitical landscape, lenders are continuing to support borrowers, which helps to drive much-needed momentum. The industry is once again showing its resilience as well as its ability to find solutions and get deals over the line.”
This article is taken from Landlord Today