Market review: looking back at 2024
The bridging finance sector demonstrated remarkable resilience throughout 2024, adapting to shifting market dynamics and evolving borrower needs. At MT Finance, we recorded several notable achievements, expanding our financial capacity to support both the bridging and buy-to-let sector.
Current market indicators
The latest housing market data and mortgage statistics paint an interesting picture for the bridging sector. Latest figures from the Nationwide house price index show a strong end to 2024 as we see UK house prices go up 4.7% year-on-year in December.
The Bank of England’s decision to maintain interest rates in December also marks a pivotal moment for the bridging finance market. This stability in monetary policy will provide a solid foundation for market growth and innovation in the year ahead, creating a more predictable environment for both lenders and borrowers.
Market Outlook for 2025
The bridging market enters 2025 with a degree of caution, influenced by several factors including the interest rate environment and its impact on property market activity. Ongoing adjustments in property valuations and shift in investor strategies and risk appetite. Despite these challenges, we anticipate continued demand for bridging finance fuelled by the new FCA mortgage lending rules and the stamp duty rush to buy – with less than three months left on the clock.
As we move into the latter half of 2025, we expect to see increased market stability, growing confidence among property investors and potential uptick in transaction volumes. With the interest rates holding steady, and more cuts expected in 2025, several emerging key trends in the bridging market point to exciting opportunities ahead. Some of these include:
- Value-add focus: As market conditions continue to stabilise, investors will gravitate towards properties with significant value-add potential. The current environment, characterised by steady rates, can enable more accurate forecasting of costs and returns which will drive confident decision-making in renovation and repurposing projects, opening new opportunities for strategic property investment.
- Regulated bridging expansion: 2024 saw a rise in regulated bridging, as it emerged from its niche position to become a mainstream financing tool. Its versatility in supporting various financing needs, from property refurbishments to chain-break solutions, makes it an essential tool for property investors. Looking ahead, the predictable interest rate environment will further boost this sector, giving homeowners and investors greater confidence in using regulated bridging products with more foreseeable exit costs.
- Portfolio diversification: The diversification trend that gained momentum in 2024 shows strong signs of continuation into 2025. With stable rates and predictable borrowing costs, property investors can explore opportunities across various asset classes and geographical areas. This strategic approach to portfolio management will allow investors to spread risk while maintaining attractive returns.
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 and buy to let product range are designed to meet diverse financing needs.
Bridging loans key features:
- 1st and 2nd charges from 0.85%
- Up to 70% LTV
- Loans from £50,000
- Terms from 1–24 months
- No personal guarantees required
- No upfront fees, no exit fees, no ERCs
- Commission paid the same day as completion
Buy-to-Let Mortgages features:
- Range of 2 and 5-year fixed rate products
- Individual, limited company and LLPs
- LTVs up to 80%
- Expats, HMOs, MUFBs, and semi-commercials
- First time landlords and buyers considered
- Flexible approach to portfolio landlords
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