Bridging finance is “surging” in 2025, Clifton Private Finance has stated, with market conditions and evolving borrower behaviour contributing to this performance.
The firm’s latest data revealed a growing demand for bridging loans across residential and investment markets, with loan activity between January and June 2025 totalling over £482m.
Head of bridging at Clifton Private Finance, Fergus Allen, said that residential transactions, particularly for buy-to-let (BTL) mortgages, are becoming “increasingly common”, with regulated bridging for residential use being a noted trend in recent months.
Clifton found that in the first half of the year, 58% of its bridging loans were regulated, marking a shift from investor-only usage to more mainstream adoption.
Furthermore, the firm has seen more older homeowners using bridging loans to downsize ahead of a sale. It stated that as these transactions often involve selling a more expensive property to buy a cheaper one, loan-to-value ratios tend to be low, making them “attractive to lenders”.
Investors are “getting smarter” in using bridging lending products, according to Allen, with 19% of loans issued by Clifton exiting through BTL refinance in the first half of 2025.
He stated: “A growing number of landlords and first-time investors are using bridging more strategically. They purchase and refurbish properties before refinancing onto a BTL 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.”
Clifton noted that an increased awareness around exit strategies is another “major advancement” in the current bridging landscape, with Allen believing that this awareness has only improved the market.
He concluded: “Whether the end goal is the sale of a property, a BTL 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.”
