It’s been a robust third quarter for the bridging finance market with faster completion times, increased lending volumes and contributor gross lending hitting £220.8m.
The data comes from Bridging Trends and reveals completion times fell to 46 days in Q3 2024, down from 52 days in Q2, marking the fastest average completion time since Q2 2019.
Bridging Trends suggests this is a positive sign that signals improvement in operational efficiency alongside a 9% boost in total gross lending, with contributors recording an increase from £201.8m in Q2 2024 to £220.8m in Q3 2024.
This is continuing the positive upward trend seen throughout the year and suggests market resilience during traditionally quieter periods.
Most bridging loans in Q3 were used for investment purchase – rising from 18 per cent in Q2 to 24 per cent in Q3. This increase suggests growing investor confidence in the market despite Q3 being the summer period.
Demand for regulated and unregulated refinance saw the biggest rise, jumping from 6% to 14% and 6% to 13% respectively.
Decline in chain-break loans suggest a more stable market with fewer disruptions.
The proportion of first charge loans in Q3 increased from 88.4 to 91% while second charge loans decreased to 8% from 11.6%.
The average loan-to-value also dropped fractionally, from 59.3 per cent in Q2 to 56.8 per cent this quarter.
Elsewhere, the average term remained at 12 months for the 12th consecutive quarter.
Bridging Trends combines bridging loan completions from several specialist finance packagers operating within the UK bridging market: AFIG, Brightstar Financial, Capital B, Clever Lending, Clifton Private Finance, Complete FS, Enness, Impact Specialist Finance, LDNfinance, Optimum Commercial, Sirius Finance and UK Property Finance. The data for top broker criteria searches is supplied by Knowledge Bank.
To view the Bridging Trends Q3 2024 infographic, visit www.bridgingtrends.com
