Applications for bridging finance reached £11.7 billion in the final three months of 2025, a 2.6% rise on the previous quarter, according to new data from the Bridging and Development Lenders Association (BDLA).
Total lender loan books closed the year at £13.4 billion, just below the record £13.7 billion recorded in September and significantly above historic levels. Loans in default fell 6.2% quarter-on-quarter during the same period, pointing to disciplined underwriting across the sector even as volumes climbed.
Development lending also grew, rising to £420.3 million in Q4 from £376.8 million in the preceding three months, as property developers continued to rely on short-term finance to keep projects moving.
The team at ABC Finance, commercial finance brokers, told us “the profile of bridging borrowers has changed considerably over the past few years. Buyers and developers are coming to us with a clear plan and a defined exit. For many, bridging is the first call rather than the last resort, particularly where a conventional mortgage timeline would mean losing a deal.”
BDLA chief executive Adam Tyler said the data reflected “the important role that short-term lending plays in supporting property investors, developers and homeowners who require flexibility,” adding that the reduction in defaults indicated lenders were maintaining strong underwriting standards.
Speed continues to drive take-up. Industry figures show bridging completions have consistently outpaced traditional mortgage timelines, with many deals completing in under six weeks.
Overall mortgage lending in the UK is forecast to reach around £300 billion in 2026, and further base rate reductions are expected to keep borrowing costs competitive throughout the year.