Demand for bridging finance rose 5% in Q3 as gross lending reached £209.4m, up from £199.7m in the prior quarter, MT Finance has reported.

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

The rise in demand was put down to borrowers looking to prioritise speed and flexibility amid uncertainty ahead of the Autumn Budget on 26 November.

Funding for investment purchases accounted for 20% of all deals, up from 16% in Q2. The need to move quickly was also reflected in the average completion time falling from 48 days in Q2 to 41 days in Q3.

Re-bridging deals rose 12%, which MT Finance said could be due to a slower property market, resulting in borrowers with a resale exit strategy finding it harder to redeem their bridging loans.

This may have also contributed to the average monthly interest rate rising from 0.81% in Q2 to 0.85% in Q3, according to the report.

The biggest fall was in bridging loans used to refinance property, down from 18% in Q2 to 12% in Q3.

Raphael Benggio, bridging director at MT Finance, said: “Considering the uncertainty that the market is going through, including whether base rates will come down any further and the wait 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.”