New research shows that more than one in three UK property developers are turning to bridging finance, driven by rising interest rates and tighter lending criteria from traditional lenders.
In 2025, 36% of developers are actively using bridging loans compared to 22% opting for traditional buy-to-let loans, and 17% for refurbishment finance.
With over 40,000 searches each month in the UK, it’s evident borrower behaviour is evolving fast, with new patterns emerging in how, when and why people use short-term property finance.
Data from Clifton Private Finance, based on over £482 million in loan activity between January and June 2025, reveals a growing demand for bridging loans across residential and investment markets.
While developers remain a major driver of this demand, new data shows that bridging loans are increasingly being adopted by residential buyers and homeowners for a wider range of reasons.
From faster completions to changing exit strategies, Fergus Allen, Head of Bridging at Clifton Private Finance, comments: “We have seen significant demand over the past 12 months. Bridging finance was once predominantly used by property flippers and developers, and while this segment evidently remains strong, it is becoming an increasingly common option in everyday residential transactions, particularly buy to let.
“Bridging loans give buyers flexibility and the power to move quickly. You are effectively a cash buyer, which is very attractive to sellers. For buyers facing competitive scenarios or delays, bridging helps secure a deal. That is why it is becoming more mainstream.”
Below, Fergus highlights the most significant borrower trends that are reshaping bridging in 2025:
Buy-before-you-sell has become mainstream
“One of the fastest growing trends is homeowners using bridging to secure a new property before their current one has sold. This strategy is especially valuable in a competitive market where delays can cost buyers their ideal home or a profitable investment opportunity.
“With bridging, buyers can move with speed as cash purchasers. This gives them stronger negotiating power and greater control over timelines.
“Our data shows 75% of bridging exits in the first half of 2025 were completed through property sale. That is a clear sign that bridging is helping homeowners beat the chain.”
Rise in regulated bridging for residential use
“58% of bridging loans we arranged in the first half of 2025 were regulated. This means they funded purchases where the borrower or their family will live.
“This marks a shift from investor only usage to more mainstream adoption. Buyers are now viewing bridging as a flexible alternative to traditional mortgages, whether upsizing, downsizing, relocating or breaking a chain.”
Downsizing for retirement
“We are seeing older homeowners use bridging to downsize ahead of a sale. This is often to relocate closer to family or move into more suitable retirement homes.
“As these transactions often involve selling a more expensive property to buy a cheaper one, loan to value ratios tend to be low, typically around 50% or below. This makes them attractive to lenders and helps secure favourable rates”
Speed has become a dealbreaker
“Our data shows an average completion time of just 43 days. That is significantly faster than most high street mortgage products, which can take 12-16 weeks. When you work with a broker who has strong lender relationships, there are ways to move even quicker.
“With demand outstripping supply, speed gives buyers a competitive edge. Bridging is ideal for time sensitive situations like auction purchases, securing below market properties or moving quickly to avoid delays.”
Buy-to-let and investing is getting smarter
“A growing number of landlords and first time investors are using bridging more strategically. They purchase and refurbish properties before refinancing onto a buy to let mortgage.
“This approach, known as bridge to let, allows investors to act on properties that do not yet qualify for a mortgage. It also helps boost rental yield through upgrades and secure better long term terms once value has been added.
“In the first half of 2025, 19% of loans were exited through buy to let refinance. That shows this short term to long term model is gaining traction.”
Exit strategy awareness has improved
“Another major advancement in today’s bridging landscape is the increasing awareness around exit strategies. While it was once viewed as a last minute solution, modern borrowers now understand that a clear and achievable exit plan is essential.
“Whether the end goal is the sale of a property, a buy to let remortgage, or the maturity of a pension or investment product, borrowers are focused on minimising risk and maximising speed at the point of repayment.
“This change in mindset has led to stronger applications, faster completions and higher lender confidence.”
