Bridging Finance Statistics UK 2026

Bridging finance is a short-term loan. It helps people buy, refinance, or fund a property project when timing matters. In the UK, it is still specialist finance, but the market is growing fast.

This post covers the key UK bridging stats for 2026, market growth, property-led demand, time to complete, loan purposes, and exit strategies. It also adds rate and regional context.

Sources: Historic market stats come from UK Bridging Finance Market Size and Growth (2020-2026). The 2025 to 2026 outlook figures also use your supplied sector overview, which references broker and industry commentary.

The UK bridging market in numbers (2019 to 2026 snapshot)

Annual gross lending moved sharply after 2020:

• 2019: about £3.99bn
• 2020: about £2.9bn
• 2021: about £4.2bn
• 2022: £4.94bn, up about 17.6% year on year
• 2023: about £5.76bn, up about 16%
• 2024: about £7.34bn, up about 27%

Even at this size, bridging is small next to mainstream mortgages, which the research summary puts at £300bn plus each year. Still, bridging has become a bigger part of specialist lending. The research also notes hundreds of active bridging lenders, which keeps the market competitive and pushes service standards up.

The loan book grew too. The research notes loan books over £7 to £8bn by late 2023, and ASTL members’ loan books above £10.3bn by Q4 2024.

Your 2025 to 2026 overview points to another step up. It says annual lending passed £13bn by end-2025. It also says the total loan book is projected to exceed £12bn in 2026. It cites £811m of completed loans reported by Bridging Trends contributors in 2025.

Growth in property-led bridging

Bridging is mainly property-backed. The research summary says more than 95% of bridging facilities use real estate as security. In one borrower survey, 75% of last bridging loans were secured against a main residence.

Borrower surveys also show a mixed set of goals. The research summary notes about 38% of users have used bridging to purchase a main home, about 31% to buy a residential investment property, and about 27% for commercial property purchases. That split helps explain why the market can grow even when one segment slows.

Regulated bridging is a key growth signal. The research notes regulated bridging was about 40% of loans in 2021, rising to 46.3% in 2023. This supports a wider borrower mix, homeowners as well as investors.

Risk appetite also shifted toward safer structures. Second-charge deals fell from about 23% of transactions in 2020 to about 11% in 2023. That implies roughly 89% were first charge in 2023, similar to your 2026 overview.

Time-to-complete averages

Bridging is built for speed, but times vary by legal work, valuation, and complexity. Survey data in the research summary shows:

• About 20% funded within 1 to 2 weeks
• About 21% funded within 2 to 3 weeks

So, over 40% closed in under three weeks in that survey. Industry averages were slower, around 58 to 59 days in 2022 to 2023 for packager-arranged bridges.

Why do the numbers vary so much? The fast deals tend to be simple, clear title, known borrower, quick valuation, and a clean legal pack. The slower deals often involve complex refurb works, unusual properties, or extra checks. The research summary also notes completion times lengthened compared with pre-2020, driven by deeper due diligence and capacity limits, although it also points to signs of improvement.

Your 2025 overview suggests the sector improved again, with an average of 43 days in 2025. The direction is clear, speed is improving, even if not every deal hits the fast end.

Bridging loan purposes (what the money is used for)

The biggest uses are still tied to property transactions and property works. The research summary highlights:

• Chain breaks: about 22% of loans in 2023
• Investment purchases: about 23% in 2022, about 20% in 2023, your 2026 overview also cites around 20%
• Heavy refurbishment: about 13% in 2022, your 2026 overview cites 11% of advances
• Auction purchases: about 7% in 2023, auctions often require 28-day completion
• Business purposes: about 9% in 2022

These purpose stats also show why “property-led bridging” keeps growing. Many uses have a hard deadline, auction completion, chain deadlines, or a refurb programme that needs cash now. Bridging fits those cases because it is designed for speed and flexibility.

There is also a large “time-buying” slice. The research notes refinance-related bridging was about 20% of loans by purpose in 2023. Re-bridging, meaning bridge-to-bridge, was about 8% in 2023. Your 2026 overview calls re-bridging a major opportunity, often used as part of a wider funding plan.

Exit strategies used (how bridging loans get repaid)

Every bridge needs an exit. In practice, the two main exits are sale and refinance. The research summary says these routes are used in roughly equal measure.

Terms are short. The typical contract term is about 12 months, often written as 6 to 12 months with an extension option. In practice, many borrowers repay sooner. The research summary says a common actual duration is about six months. It also notes nearly 1 in 5 loans in a survey closed in under eight weeks, often linked to auction finance.

Extensions are common when the exit is close but not ready, for example a sale that needs a few more weeks. But the longer a bridge runs, the more interest stacks up. In simple terms, time is the main risk. This is why many brokers push conservative planning, a realistic sale price, or a refinance route that does not rely on perfect conditions.

When exits slip, borrowers may extend or re-bridge. That can prevent default, but it increases cost. This is why lenders and brokers push a simple rule, start with the end.

Deal terms behind the stats (LTV, rates, and fees)

Here are the deal metrics that shape both risk and cost.

Typical loan size: The research summary says a common funding amount was about £500,000 to £600,000, with many loans in the £200,000 to £1m range.

LTV: Common LTV ranges are 50% to 70%. Around 75% is a typical maximum for most lenders. Average LTV was about 50% in 2020 and about 57% in 2021. Some lenders offered higher LTV products, including an 85% LTV product in 2021, but that is not the norm.

How interest is paid: Bridging interest can be “serviced”, paid each month, or “rolled up”, added to the balance and repaid at exit. Rolled-up structures can help cash flow during refurb works, but they also raise the balance over time, so the exit needs enough headroom.

Rates and fees: Interest is usually quoted monthly. The research summary reports an average of about 0.73% per month in 2022 and about 0.87% per month in 2023. It also notes typical ranges of 0.6% to 0.8% per month in low base-rate years. Arrangement fees are commonly 1% to 2% of the loan. Many deals have no early repayment charges, so borrowers often try to exit as soon as the plan allows.

Rates and base rate expectations in 2026

The base rate affects lender funding costs and borrower demand. The research summary notes the base rate rose from about 0.1% in 2021 to 5% plus in 2023. During that period, average bridging rates rose too, reaching about 0.87% per month in 2023.

The research summary also links demand shifts to mortgage market disruption. It notes that when mainstream mortgage lenders withdrew products or tightened criteria, such as after the 2022 mini-budget, more borrowers turned to bridging as an interim solution. It also says regulated bridging volumes jumped as some homebuyers who lost mortgage offers used bridges temporarily.

The same research notes early 2025 data showed a dip to about 0.81% per month as competition increased. Your 2026 overview expects the base rate to hover around 3% to 3.5% by end-2026. If that happens, it may support a steadier market, and it may ease pressure on pricing, though bridging will still price for speed and risk.

Regional trends

London and the South East still drive large volumes, helped by high property values and dense investor activity. The research summary notes around 49% of bridging lenders are based in London, with about 28% in the South.

But demand is not only in the capital. The research highlights strong activity in the Midlands and North. It points to cities like Birmingham, Manchester, Leeds, and Liverpool as frequent bridging locations, often driven by investor purchases and refurb work. It also notes an industry view that London’s share has trended slightly downward as more regional refurbishment and development deals grow.

What the 2026 stats suggest (simple takeaways)

Bridging is now a repeat-use product. In a 2023 survey of 1,000 plus users, 95% said they would use bridging again, and 86% expected to need another bridge within a year. The research also notes surveys where over 90% of users had used bridging more than once.

Confidence is high, but exits still decide outcomes. Your 2026 overview says about 82% of professionals feel confident heading into 2026. That confidence makes sense in a market where first charge dominates, LTVs stay moderate, and demand is strong. Still, delays can be costly. A strong exit plan matters more than the headline rate.

The sector is more standard than it used to be. The research summary describes an industry that is more transparent and professional than a decade ago. One sign is the fall in second-charge deals and the focus on education and standards across lenders and brokers.

Brokers and borrowers want clear criteria. Your overview notes popular search topics like regulated bridging, minimum loan amount, and maximum LTV. For borrowers, that translates into a simple prep list:

• State your exit in one sentence.
• Show evidence for the exit, for example an offer, a refinance plan, or a clear refurb schedule.
• Keep an equity buffer, especially if values shift.
• Prepare documents early to avoid delays.

Key stats recap

• Annual lending rose from about £2.9bn in 2020 to about £7.34bn in 2024.
• Loan books hit record highs, over £7 to £8bn by late 2023, and above £10.3bn by Q4 2024 for ASTL members.
• More than 95% of bridging facilities are secured on property.
• Regulated bridging reached 46.3% of loans in 2023.
• Over 40% of surveyed loans funded within three weeks, and average completion was about 58 to 59 days in 2022 to 2023.
• Main purposes include chain breaks, investment purchases, and refurbishment, with strong refinance and re-bridge use in the background.

If you want bridging to work in 2026, focus on the basics. Move fast, keep the deal simple, and plan the exit before you draw down.

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