Auction sales are increasingly driving demand for bridging finance as property professionals seek faster, more flexible funding options amid a stabilising and maturing market.
The latest Q2 2025 Bridging Trends data reveals that auction purchases now account for 13% of bridging loan activity, up from 12% in Q1.
While still a relatively modest slice of the overall market, it marks a clear and growing role for bridging in helping estate agents and investors secure properties at auction – particularly where time-sensitive completions are required.
The uptick comes as the bridging sector continues to show signs of stability and confidence.
FALLING RATES
Average monthly interest rates fell to 0.81% in Q2, down from 0.86% in Q1, driven by falling base and swap rates, reduced average LTVs and increased lender competition. Application volumes also rose by 11% year-on-year, with a total of 460 applications submitted – the highest Q2 figure since the dataset began.
Auction activity is particularly relevant to estate agents who are increasingly advising buyers – and even vendors – to consider bridging finance as a tactical solution in an otherwise cautious lending environment.
The speed and flexibility of bridging loans can be especially attractive to investors looking to secure below-market deals under the hammer or unlock value from unmortgageable stock.
AUCTION FINANCE
Gareth Lewis, Deputy Chief Executive at specialist lender MT Finance, says: “The reduction in interest rates combined with consistent application volumes suggests a healthy appetite for bridging finance.
“We are also seeing a clear shift in loan purposes, with refinance and auction purchases playing an increasingly significant role.”
And Chris Whitney, Head of Specialist lending at Enness Global, adds: “The Bridging Trends Q2 data reflects a market that continues to mature, with borrowers increasingly using bridging finance as a proactive solution rather than a reactive one, utilising it as a tool to meet complex and time-sensitive requirements such as auction purchases.
“With interest rates edging down and application volumes growing, the sector is clearly demonstrating both adaptability and continued relevance in a changing financial landscape.”
