Bridging rates have crept up as the Base Rate remains unchanged, but lender competition has maintained demand for bridging The bridging finance industry carries a higher risk profile than other forms of lending and this additional risk has been priced into product offerings – particularly as the Base Rate remains at a 16-year high.
Mintel’s UK Bridging Loans Market Report takes a close look at the UK bridging finance market, including information on bridging loan market size and forecast, as well as analysis of the competitive language and opportunities for growth.
Bridging rates have crept up as the Base Rate remains unchanged, but lender competition has maintained demand in the bridging loans market
The bridging finance industry carries a higher risk profile than other forms of lending and this additional risk has been priced into product offerings – particularly as the Base Rate remains at a 16-year high. However, increased lender competition provides borrowers with more choice and some lenders have placed greater focus on asset quality and loan book performance.
Property market stagnation will drive lenders diversification into new lending areas
Despite the industry’s substantial growth over the last decade, it accounts for only a small part of the total UK mortgage lending market. UK Finance expects gross mortgage lending to fall by some 6% in 2024, but it has forecast a slight increase in activity levels in 2025 alongside a modest improvement in affordability.
Speed and flexibility remain key drivers for growth in UK bridging loans market
The range of uses for bridging finance shows how borrowers and homeowners are becoming more aware of bridging’s versatility. Slow loan completion times continue to be a barrier for some transactions and this is where bridging finance can deliver a variety of quick financing options for both purchase and refinance purposes by utilising facilities such as automated valuations, internal solicitors and title insurance options.
Purchase the full report for a complete overview of the UK bridging loans market, including industry structure and comprehensive analysis from Mintel’s industry experts. Readers of this report may also be interested in Mintel’s UK Mortgages Market Report.
The following sectors make up a large proportion of the UK bridging loans market and are quantified in this report:
This report is written by Lewis Cone, Associate Director – Financial Services at Mintel. Lewis joined Mintel in May 2013 having graduated from the University of Southampton with a 2.1 BSc (Hons) degree in Economics and writes a range of industrial reports, from occupational health to the house building market.
With property market performance still being challenged by stubborn inflation and a high Base Rate, bridging loans continue to offer a viable alternative for many borrowers looking to complete transactions.
Lewis Cone
Associate Director – Financial Services
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