Bridging Trends reports record £831m of bridging loans in 2023

Friday, February 16, 2024 By Aaron Strutt

A record £831m of bridging loans was transacted by Bridging Trends contributors in 2023, a 16% increase on the previous year’s total.

The year started strongly, with contributors completing £278.8m of bridging loans in the first quarter, likely due to borrowers turning to bridging finance amid uncertainty in the mainstream mortgage market. By the second quarter, momentum cooled with £165.7m of loans transacted as borrowers were hesitant to take on debt due to high inflation and mortgage rates.

However, volume rebounded and remained consistent throughout the second half of the year. Preventing a chain break was the most popular reason for obtaining bridging finance, accounting for 22% of all loans. Regulated bridging continued to extend its market share in 2023, increasing to 46.3%.

The annual bridging interest rate increased to an average of 0.87% in 2023. Average loan-to-value levels remained static at 57%.

The split between first and second charge bridging loans remained relatively consistent, though demand for second-charge bridging loans continued to dwindle. The average completion time for a bridging loan dropped slightly to 58 days in 2023.

Aaron Strutt of Trinity Specialist Finance, says: "There are lots of bridging lenders in the market providing funding for all types of property transactions. Some of these lenders have better reputations than others particularly as they charge varying rates and setup fees.

"Our advisers work with many of the largest specialist finance providers although we will always work out if it is possible to get cheaper funding through the high street lenders if possible. Whether this is raising funds again residential properties or buy-to-let portfolios."

Call Trinity Specialist Finance to secure a mortgage on 020 7016 6151 or book a consultation 

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