Bridging Loan News

The Bank of England's Monetary Policy Committee has voted to hold the base rate at 4.5% in its latest meeting. This decision provides continued stability for bridging loan lenders who typically price their products as a margin above base rate. Industry experts expect bridging rates to remain competitive as lenders continue to battle for market share.

The UK bridging loan market reached record volumes in 2025, with total completions exceeding £8 billion. The growth was driven by increased auction activity, chain break solutions, and growing demand for refurbishment finance. Analysts expect continued growth in 2026 as property investors seek alternatives to slow-moving traditional mortgages.

Property auction activity increased by 20% in Q4 2025 compared to the same period last year, according to data from Essential Information Group. The rise in auction sales has driven corresponding demand for bridging finance, with lenders reporting increased applications from auction buyers requiring fast completion within 28-day deadlines.