It serves as an efficient solution used to support transactional volumes in the specialist finance sector.

2024 key highlights

The market has continued to attract increasing attention from institutional investors, leading to a more robust and stable funding landscape.

While barriers to entry remain relatively low, brokers have become more discerning, focusing on quality deals while evolving in their understanding of the nuances of the business and the regulatory environment.

A broader range of funding sources emerged, strengthening the relationship between lenders and aggregators thus boosting market liquidity.

Lenders and borrowers have seized opportunities presented by market volatility, particularly in areas like development finance and asset acquisition.

Emerging trends shaping the future of bridging

There is a bigger focus on adding value, whether through yield play or capital appreciation, particularly on the lenders’ side.

Regulated bridging finance has gained recognition as a valuable tool used for a variety of purposes, including property refurbishment, development finance, and bridging gaps in property chain transactions.

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In 2024, lots of property investors increasingly diversifying their portfolios to mitigate risk and capture opportunities across different asset classes and geographies.

Looking ahead

As we head into 2025, the bridging finance market is poised for further growth and evolution.

The impact of interest rate fluctuations and broader economic trends will influence borrower demand and lender appetite.

Ongoing regulatory developments will shape the market, particularly in areas such as consumer protection and responsible lending.

Consistency and stability in a high or low interest environment brings stability which influences borrowers’ and lenders’ decisions.

Consistency in the market makes borrowers comfortable, which will make lending more palatable.

MT Finance in 2025

We remain committed to supporting brokers and their clients to bolster the growth and development of the bridging finance market in 2025.

Our key priorities include enhancing customer experience, streamlining processes and refining credit criteria to improve turnaround times and customer satisfaction, introducing new products and services and expanding into new market segments and geographic areas.