Bridging loan completions rose in 2022: Apex Bridging


Almost £5bn was lent via bridging loan completions in 2022, marking a 17.6% increase on the year before, data has shown.

Using market trends data from the Association of Short Term Lenders, Apex Bridging looked at how homebuyer reliance on bridging has increased since 2019, as well as making predictions for the future.

Figures revealed a total of £4.94bn was lent via bridging loans in 2022, a 17.6% rise on the £4.2bn completed the year before.

This is also 24% higher than the pre-pandemic figure of £3.99bn loaned via bridging in 2019.

The market is predicted to increase further to £5.59bn by 2025.

Apex Bridging managing director Chris Hodgkinson comments: “With the exception of the market dip seen in 2020 due to initial pandemic market restrictions, the bridging sector has gone from strength to strength in recent years and we’re now seeing considerably more lent via bridging loans on an annual basis, even when compared to the pre-pandemic market in 2019.

“There’s a common misconception that bridging is really only utilised in times of crisis in order to save a transaction from collapse and while this is certainly the case to some extent, it’s far from the only reason that many buyers and investors utilise bridging loans.

“The sector is utilised by a range of buyers and investors for a myriad of reasons and as the traditional mortgage lending space becomes increasingly more difficult, not to mention expensive, we expect to see the reliance on bridging loans continue to increase over the next few years.”

Investment purchases were the main reason for bridging activity, accounting for 23% of all loans issued, followed by chain breaks (20%), heavy refurbishment (13%), unregulated finance (11%) and business purposes (9%).

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