This is the highest quarterly figure since Q3 2024’s £220.8m and reverses the downward trend that had seen quarterly totals fall since this time last year.

Funding an investment purchase accounted for 20% of all transactions, up from 16% in Q2.

Average completion times fell from 48 days in Q2 to 41 days in Q3; MT Finance claims this may be a response to the uncertainty around the upcoming Autumn Budget.

The lender said that the slowdown in the property market may have led to the increase of re-bridges to 12% and the average monthly interest rate rising from 0.81% in Q2 to 0.85% in Q3.

However, bridging loans used to refinance a property saw the biggest drop, with regulated refinance decreasing by a third, falling from 18% in Q2 to 12% in Q3.

Meanwhile, unregulated refinance nearly halved, dipping from 11% in Q2 to 6% in Q3.

Despite the increase in bridging loans funding an investment purchase, the proportion of unregulated bridging loans fell marginally, from 55% in Q2 to 54% in Q3.

Data provided by Knowledge Bank also revealed a demand for regulated bridging. It came in as the top criteria search made by UK bridging finance brokers in Q3.

The percentage of second charge bridging loans rose slightly, from 10% in Q2 to 12% in Q3. The average LTV rose fractionally, from 54% in Q2 to 55% in Q3, with the average term remaining at 12 months.

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The Bridging Trends report combines bridging loan completions from several specialist finance packagers operating within the UK bridging market: AFIG, Brightstar Financial, Capital B, Clever Lending, Clifton Private Finance, Complete FS, Enness, Impact Specialist Finance, LDNfinance, Optimum Commercial, Sirius Finance and UK Property Finance.

The data for top broker criteria searches is supplied by Knowledge Bank.

William Lloyd-Hayward, group COO and managing director at Sirius Finance, commented: “This latest Bridging Trends data is a great example of the versatility of bridging finance, regardless of the broader property market conditions.

“The significant increase in re-bridging shows how borrowers are turning to short-term finance to maintain liquidity in a slower sales environment.

“At the same time, the growth in transactions funding investment purchases shows that investors are spotting value in the current market and using bridging as a means of moving quickly on opportunities.

“It’s a clear demonstration of the dual role bridging plays — supporting both those needing breathing space and those ready to act decisively. And it’s a clear message to brokers about the importance of having bridging as part of your toolbox.”

Raphael Benggio, bridging director at MT Finance, said: “Considering the uncertainty that the market is going through, including whether the base rate will come down any further and waiting for the Budget outcome, it’s clear that bridging finance remains an important tool for borrowers looking for specialist finance.

“It is great to see lenders servicing clients quickly and that the average completion time has fallen by a week.”