Short-term bridging finance has seen a sharp rise in uptake across the UK, with both individuals and professionals using it to move faster in an increasingly pressurised housing market. In 2024 alone, lending volumes crossed the £7 billion threshold – a significant jump from the previous year. The final quarter alone saw over £2.3 billion in completions, signalling growing reliance on this form of funding.
This surge in demand points to a clear shift in strategy: buyers, landlords, and developers are turning to bridging loans to outmanoeuvre traditional timelines, beat competition, and progress with purchases or projects that standard mortgages can’t support quickly enough.
What’s Driving the Uptake?
Speed Above All
One of the main reasons bridging finance has gained ground is its ability to deliver funds quickly – often within days. Compared to the lengthy mortgage approval process, which can drag on for months, bridging offers a practical alternative for those under time pressure. In early 2025, the average turnaround time for a bridging loan dropped to just over a month – the quickest recorded to date.
For many buyers, the ability to act fast can make the difference between securing or losing a property. Whether it’s a fixer-upper or a time-limited opportunity, bridging loans allow buyers to proceed without waiting for conventional finance approval.
Built-In Flexibility
Bridging lenders operate with greater agility than traditional banks. Instead of strict income or affordability assessments, they focus more on the property’s value and how the borrower plans to repay the loan – known as the exit strategy. Interest can often be rolled into the loan, and repayment schedules can be tailored to suit the borrower’s needs.
This adaptable approach means bridging loans are suited to a variety of scenarios – from homeowners stuck in a chain to developers needing short-term cash flow.
Gaining an Edge in a Crowded Market
With limited housing stock and strong demand, sellers tend to favour buyers who can move fast and don’t bring complications. A bridging loan allows buyers to behave like cash purchasers, eliminating delays tied to mortgage offers and property chains. This added certainty often strengthens a buyer’s position in negotiations.
For this reason, bridging loans are commonly used by those looking to purchase a new home before their existing one is sold – allowing them to secure a move without missing out due to delays in their sale.
Where Bridging Finance Fits In
Bridging loans have a wide range of uses across both residential and investment settings. The most common include:
1. Moving Home Without Delay
Many homeowners use bridging to secure their next property before their current home is sold. This avoids missing out due to broken chains or slow sales. In mid-2024, nearly a quarter of all bridging loans were used for this exact reason.
2. Buying at Auction
With auctions requiring completion in just 28 days, traditional mortgages often can’t meet the deadline. Bridging finance fills this gap, helping bidders complete on time. The proportion of bridging loans used for auction purchases grew significantly in 2024, reflecting this trend.
3. Funding Refurbishments or Developments
Bridging is also popular among property investors and developers, particularly those buying rundown buildings that wouldn’t qualify for a standard mortgage. The loan is used to buy and renovate the property, with repayment made through resale or refinancing. A growing share of bridging loans in 2025 have supported heavy refurbishment projects, indicating rising investor confidence in short-term value-add strategies.
4. Securing Buy-to-Let Properties
Landlords often use bridging loans to acquire rental properties quickly, especially if a mortgage would take too long or if minor upgrades are needed before refinancing. The cost difference between bridging and long-term buy-to-let mortgages has narrowed recently, making short-term finance a more attractive option. Lower arrangement fees and short loan terms often help offset the higher monthly interest.
What’s Fuelling the Market Boom?
Several broader shifts have helped bridging finance become more mainstream.
• High property prices continue to pressure buyers to act swiftly to avoid being priced out.
• Mortgage processing delays, driven by tougher lending criteria and stretched legal pipelines, have caused significant frustration.
• In 2023 alone, hundreds of thousands of property transactions fell through, often due to financing setbacks – an issue that bridging can help sidestep.
• Cash buyers dominate a large share of the market, and bridging loans help financed buyers compete on similar terms.
• Even with rising interest rates, lenders have kept bridging terms competitive and service fast, often deploying in-house legal teams and digital tools to streamline the process.
From Niche to Normal
Once seen as a tool of last resort, bridging loans have now become an accepted – and increasingly common – method of property finance. No longer limited to experienced developers, these loans are now used by everyday movers, investors, and landlords.
With lending volumes expected to top £12 billion by the end of 2025, bridging finance is set to remain a core part of the UK property landscape. Its key strengths – speed, adaptability, and certainty – are well-suited to a market where timing can make all the difference.