By Clare Yates
3 min read
New data shows the market stayed steady in the final quarter of 2025. The Bridging & Development Lenders Association (BDLA) reported that applications for bridging loans reached £11.7bn in the last three months of the year, which is a 2.6% rise compared with the previous quarter.
While more people applied for bridging loans, the amount actually completed came to just under £2.5bn, which is a small dip compared with the previous quarter. At the same time, the total amount lenders currently have lent out stood at £13.4bn. That is only slightly below the record £13.7bn reached earlier in the year and still very high by historical standards.
Steady growth, stable lending
There was also some good news on how bridging loans are working out for borrowers. Loans in default fell by 6.2%, suggesting lenders are continuing to take a careful and responsible approach. Average loan‑to‑value ratios nudged up to 58.6%, which the BDLA says points to steady confidence among lenders.
Property development activity also showed signs of picking up. Development lending rose to £420.3 million during the quarter, reflecting ongoing interest from investors and developers who want to move quickly when opportunities arise.
What’s behind the demand?
Bridging loans are often used when speed and flexibility are essential – such as buying at auction, funding refurbishments or managing a chain break. In a market where traditional lending can take longer or feel more restrictive, that flexibility is proving increasingly valuable.
Adam Tyler, chief executive of the BDLA, said demand remains strong as borrowers continue to rely on short-term finance for these types of situations. He also noted that the sector has held up well despite uncertainty surrounding the Autumn Budget.
Another trend starting to come through is a stronger focus on quality. Borrowers and brokers are becoming more selective and are choosing lenders with solid reputations and clear, easy‑to‑understand criteria. This shift is helping to keep the market steady and well‑balanced.
What it means for borrowers
For those considering a bridging loan, the latest data suggests a stable and active market, with lenders still keen to support well-structured applications.
However, timing and planning remain crucial. With costs still relatively high and market conditions shifting, having a clear exit strategy – whether that’s a sale, refinance or longer-term mortgage – is key to using bridging finance effectively.
Overall, the figures highlight a sector that’s holding firm. And for borrowers who need fast, flexible funding, bridging loans continue to play an important role in helping deals move forward.
