Unregulated finance drives 2.4% quarterly growth in bridging loans
The latest Bridging Trends report has revealed that completion times have reached their fastest pace in over five years, averaging 46 days. This marks a decrease from 52 days in Q2 2024, representing the quickest average completion time since Q2 2019.
The report also noted a 9% increase in total gross lending, with reported figures rising from £201.8 million in Q2 2024 to £220.8 million in Q3 2024. Notably, both regulated and unregulated refinancing saw significant increases, with regulated refinance jumping from 6% to 14%, and unregulated refinance rising from 6% to 13%.
In Q3, the majority of bridging loans were utilised for investment purchases, climbing from 18% in Q2 to 24%. Data from Knowledge Bank indicated that regulated bridging remained the most searched criterion among UK bridging finance brokers in Q3, underscoring its importance for borrowers.
The proportion of first-charge loans increased from 88.4% to 91%, while second-charge loans decreased from 11.6% to 8%. Additionally, the average loan-to-value (LTV) ratio saw a slight drop from 59.3% in Q2 to 56.8% this quarter.
The average loan term has remained steady at 12 months for the twelfth consecutive quarter.
Apex Bridging’s Managing Director Chris Hodgkinson said “It’s clear Bridging still has a strong place in the sector and is such a good option if you need to complete in a hurry”