As of June 2025, the UK bridging finance market continues to demonstrate remarkable resilience and growth. As a result we are seeing significant opportunities for brokers and their clients. Loan book values surpassed £10.3 billion in Q4 2024, and gross lending remained stable at £202 million in Q1 2025 (Bridging Trends, MT Finance, Q1 2025) and the market is set for further expansion.

Read on as our Chief Executive Officer, Jo Breeden, dives into the current state of the bridging finance market, emerging trends, future predictions and how brokers can leverage our expertise at Crystal Specialist Finance to support their clients.

Current Bridging & Borrowing Trends

The bridging finance market is booming and has evolved from a niche solution to a product some can’t live without. There are a few key trends shaping the market this year and driving demand for bridging loans.

• Bridging loans for investment purchases surged, from 13% in Q4 2024 to 23% in Q1 2025 (Bridging Trends, MT Finance, Q1 2025), driven by investors capitalising on opportunities in a competitive property market. This trend reflects growing confidence among property investors looking to acquire assets with value-add potential.

• The demand for bridging loans to fund energy efficiency improvement has grown, with 33% of loans in 2024 used for refurbishment purposes. This is largely due to changes in legislation, which require landlords to upgrade their property rating to a minimum of C by 2030.

• Completion times dropped to 32 days in Q1 2025 (Bridging Trends, MT Finance, Q1 2025), highlighting the markets increasing efficiency.

• Competition with lenders in the industry is driving innovation. We are seeing lenders offer more flexible products, better rates and faster processing times.

• Preventing chain breaks accounted for 23% of bridging loans in Q4 2024, whilst auction purchases rose to 14% (Bridging Trends, MT Finance, Q2 2024). This reflects the versatility of the market in addressing diverse borrower needs.

Bridging Borrowing Predictions for 2025

There are several factors driving the upward trajectory of bridging finance, and this is set to continue through 2025.

• The market is projected 25% growth over the next five years. More investors and homeowners will seek flexible solutions as a result of government changes, and lenders are set to expand their product ranges to meet unique demands.

• Refurbishment loans will become more popular, as landlords prepare for the new EPC legislation deadline by 2030.

• The Bank of England’s base rate is expected to see further reductions and lower interest rates are likely to reduce the cost of borrowing for bridging loans, making them more attractive to your clients.

• Government backed initiatives are expected to boost property investment outside of London, increasing demand for bridging in regional markets.

• Potential challenges include regulatory changes, such as evolving FCA regulation, and economic uncertainties, including inflation. Brokers must remain agile to navigate these complexities.

What Brokers Need to Know

As a broker, for you to excel in the evolving bridging finance market, you should consider focusing on the following.

• Have a client focussed approach, where you fully understand what the client needs. Whether this be for refurbishments, chain breaks, or auction purchases. At Crystal we cater to a whole host of specialist scenarios, see our bridging case studies here.

• Leverage packagers with streamlined processes to meet client expectations as completion times dropped to 32 days in Q1 2025 (Bridging Trends, MT Finance, Q1 2025).

• Work with an expert packager who can access products and rates which are not widely available elsewhere and have expertise in both regulated and unregulated loans.

Crystal Specialist Finance is your go-to specialist finance partner for solutions, fast! We like to say yes when others say no. Helping you to close more deals, so you can focus on growing other areas of your business.

If you are interested in how we can help you spot opportunities and boost your bridging business, get in touch today. Call our New Business Advisers on 01827 337710 or alternatively, submit an application online in just under 10 minutes via the CrystalHUB.