Bridging Finance in 2024 – A Year of Efficiency
The latest Bridging Trends data reveals the UK bridging finance market demonstrated remarkable resilience in 2024, maintaining robust lending volumes and notable improvement in operational efficiency. A key takeaway is the significant 23% drop in average completion times going from 58 days to 47 days. This reflects a positive shift in the market, with lenders and brokers streamlining processes and improving communication.
2024 lending trends, borrower behaviour and market opportunities
Throughout the year, lending volumes remained consistent at ÂŁ822.2 million, despite economic uncertainty. This consistency speaks to the resilience and constant evolution of the market. For brokers, this resilience provides a stable platform from which to operate revealing new shifting patterns of borrower behaviour with increase in auction purchases, business purposes and regulated refinance.
2024 saw notable increase in auction purchases from 7% to 11% and decline in chain break from 22% to 20% which presents a clear opportunity for brokers. This trend highlights the growing importance of bridging finance in supporting investor activity which suggests that more investors are recognising bridging finance as a viable tool for auction and business purchases, but it also indicates there’s still significant room for growth in this sector.
The modest uptick in average monthly interest rates from 0.86% to 0.88% demonstrates the market’s measured response to broader economic pressures. This presents an opportunity to position bridging finance as relatively stable compared to other forms of finance that may have seen more dramatic rate increases.
Furthermore, the decrease in re-bridging activity from 9% to 7% indicates that borrowers are successfully exiting their loans which signals improved market conditions and increased borrower confidence. As borrowers’ confidence continues to grow, brokers can capitalise on this positive momentum by advising clients on appropriate exit strategies and encouraging them to explore alternative financing options.
Looking Forward:
The bridging finance market has demonstrated its resilience and adaptability throughout 2024. Clear markers of success this year are operational efficiency, strategic adaptability, deep understanding of borrowers’ needs and willingness to innovate.
As we move forward, the key will be to maintain this momentum in operational efficiency while continuing to identify and develop new opportunities in the market. The reduction in completion times and stable lending volumes provide a strong foundation, and the shifting borrower patterns offer interesting opportunities for lenders and intermediaries.
The continuing balance between regulated and unregulated lending suggests there’s still plenty of room for growth in both sectors. For lenders and brokers, this presents an opportunity to elevate service offering and demonstrate the strategic value we bring to the table.
How MT Finance can help:
At MT Finance, we’re positioned to support this market momentum with our comprehensive range of financing solutions. Our bridging loans product range is designed to meet diverse financing needs including auction finance, investment purchase, heavy and light refurb, as well as first and second chares.
Bridging loans key features:
- 1st and 2nd charges from 0.85%
- Up to 70% LTV
- Loans from ÂŁ50,000
- Terms from 1–24 months
- No personal guarantees required
- No upfront fees, no exit fees, no ERCs
- Commission paid same day as completion
If you have a case you would like to discuss directly with us, drop us a line, and we will be in touch with you.
* 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 Finance, Sirius Finance and UK Property Finance. The data for broker criteria searches is supplied by Knowledge Bank. For more information, or to view previous versions of the infographic, visit bridgingtrends.com.