Purchasing an investment asset remained the most popular use of bridging finance in Q1, accounting for 22% of all transactions, according to the latest Bridging Trends data.

The latest figure was unchanged from Q4 2025, although the impact from the conflict in the Middle East won’t be fully clear until Q2.

Bridging Trends combines bridging loan completions from several specialist finance packagers operating within the UK bridging market, including AFIG, Brightstar Financial, Brilliant Solutions, Capital B, Clever Lending, Clifton Private Finance, Complete FS, Enness, Impact Specialist Finance, LDNfinance, Optimum Elite and Sirius Finance. The data for top broker criteria searches is supplied by Knowledge Bank.

Figures suggested that landlords and investors seemed to be gaining confidence prior to the start of the conflict and taking advantage of a sense of stability, with unregulated bridging loans extending their market share from 56% in Q4 2025 to 59% in Q1. This was the highest it’s been since Q4 2021, when it came in at 64%.

The focus on purchases was also evident in the proportion of first charge bridging loans which climbed from 89% in Q4 to 91% in Q1, the joint highest it has been since Bridging Trends records began in 2015.

This move away from second charges saw demand for finance to fund heavy refurbs and business injections plummet from 11% in Q4 to 6% in Q1, and 8% in Q4 to 4% in Q1 respectively.

Bridging and commercial director at Brilliant Solutions, Sonny Gosai, said that Q1 highlighted “a bridging finance market that remains resilient and increasingly selective”.

“While contributor gross lending held firm at nearly £200m and first charge lending continued to dominate, the data shows borrowers prioritising speed, security and investment-led opportunities,” Gosai commented.

“Investment purchases remained the leading use of bridging loans, while demand shifted away from heavy refurbishment and business-purpose borrowing, reflecting a more cautious but opportunity-driven market landscape.”

Sales director at Knowledge Bank, Shane Chawatama, added: “These search trends within bridging highlight a clear shift in investor behaviour.

“Together, these trends point to a market that is becoming more strategic, but also one that must navigate the ongoing challenges of upgrading existing housing stock, particularly in the context of evolving EPC requirements and regulatory pressures.”

In total, £199.2m in bridging loans was transacted by Bridging Trends contributors in Q1, a slight change from Q4’s £199.9m. The average loan-to-value (LTV) fell from 56% in Q4 to 52% in Q1, while at the same time the average monthly interest rate also dropped, going from 0.83% in Q4 to 0.82% in Q1.

The average term for a bridging loan remained 12 months and the average completion time rose slightly, from 52 days in Q4 to 53 days in Q1.

CEO at LDN Finance, Chris Oatway, commented: “The market is clearly favouring lower-risk transactions, with borrowers and lenders alike prioritising straightforward acquisition and refinance deals over heavier refurbishment projects where construction costs, programme delays and sales tail risk create greater exposure.”

Bridging director at MT Finance, Raphael Benggio, added: “Investors and landlords in particular seemed to be maximising bridging’s potential in Q1 and the dip in LTV shows that borrowers were careful about not overburdening themselves.

“We will have to wait and see to get a real measure of how the conflict in Iran has affected the market but the bridging sector will continue to offer solutions to landlords, business owners and homeowners alike.”

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