Evolving use of bridging loans is driving growth

The bridging market is in an incredibly positive place, and that has never been clearer than in the latest data from the Bridging & Development Lenders Association (BDLA).

Figures for the first quarter of 2025 show bridging completions matched the record levels seen at the end of last year. That alone is impressive, but even more so when you consider the first quarter is usually quieter. On top of that, applications have surged by more than 50% compared to the previous quarter, which says a lot about the confidence running through this part of the market.

The BDLA described it as an unprecedented spike in demand, and I think that assessment is fair. We are seeing the old patterns of seasonal slowdowns give way to more sustained momentum. From my perspective, this shift is happening because bridging has moved beyond being a short-term fix. More brokers and investors are using it as a planned part of longer-term strategies.

From reactive to strategic

Bridging was once treated mainly as a last resort when something went wrong; a chain collapsed or a mortgage fell through. That mindset is changing fast. Today, more investors see bridging as a way to get ahead rather than simply recover from setbacks.

Across the market, brokers are arranging bridging facilities to reposition portfolios, fund substantial refurbishment and manage complex transactions that involve tight time frames or layered ownership. Heavy refurbishments and permitted development conversions have become much more prominent, especially as regulation such as the Renters’ Rights Bill pushes landlords to improve the quality and energy efficiency of their properties.

This more strategic approach has also influenced the way lenders develop products. Structured facilities that link bridging and term funding more closely have become more common across the market, reflecting demand for joined-up solutions rather than isolated transactions. The most effective brokers are showing clients how bridging can offer more flexibility, clearer exit plans and stronger outcomes in the long run.

Scratching the surface

Even with all this progress, it still feels as though the industry is only scratching the surface of what bridging can achieve. There are many brokers who are comfortable arranging buy-to-let (BTL) or commercial term deals but may not always consider bridging, even when it could create more options for their clients.

Sometimes that comes down to perception. Bridging can still feel risky or complicated if it is only seen in the context of distressed situations. In reality, when structured properly, bridging can open doors that mainstream lending cannot.

The experience of the last few years has shown that certainty of funding is among the qualities brokers value most in a bridging lender. Funding models that are less exposed to volatility and more stable over time can give brokers and clients the confidence to move forward, even on larger or time-sensitive transactions.

Similarly, the ability to offer dual representation or simplified legal processes can remove a lot of friction and keep deals progressing to completion without unnecessary delays. These features are increasingly seen as essential rather than optional.

More broadly, lenders have a responsibility to help demystify bridging and build broker confidence. It is not enough to put products on the shelf and expect uptake to follow. Clear communication, education and a collaborative mindset are just as important as competitive pricing.

That is why experience makes such a difference. It is far easier for brokers to recommend bridging when they know the exit has been thought through from the outset and that there is a clear plan in place to move onto term funding when the time comes.

Raising the bar

The BDLA data also highlights the number of new lenders entering the market. That competition is positive for brokers and clients, but it does mean the bar keeps rising.

The reality is, any lender is only as good as their last deal. Speed is important, but it is not the only thing that matters. Brokers expect clarity, open communication and a willingness to engage in detail. They want to work with people who will pick up the phone, talk through scenarios and stay involved as a case evolves.

In many ways, bridging remains a relationship business at heart. Technology is playing a bigger part in improving efficiency, but it is no replacement for expertise and a pragmatic approach when cases become more complex.

Perhaps most importantly, brokers need to see that lenders can handle deals with multiple moving parts, whether that involves planning considerations, refurbishment work or layered ownership structures. This is where judgement and experience really stand out.

Brokers deserve partners who take time to look at the bigger picture and help find a way forward when challenges appear. That is what builds trust and earns the repeat business that keeps this market strong.

The bridging sector is in great shape, and the figures speak for themselves. But beyond volume alone, the real opportunity lies in evolving bridging into the strategic tool it can be. It should be something brokers feel confident recommending as part of a longer-term plan, not simply as a last resort. When lenders and brokers work together with that mindset, there is enormous potential to keep driving this market forward.

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