The Intermediary – November 2025 - Flipbook - Page 83
SPECIALIST FINANCE
Opinion
In my view, this reflects exactly
what we’re seeing on the ground: a
market that has caught its breath aer
an exceptional start to the year, but
continues to show remarkable depth
and resilience.
and mixed-use transactions that have
driven much of our growth.
For brokers, this remains the
area of greatest opportunity, where
short-term finance can make a real
difference.
Refinancing leads the way
Confidence returning
Refinancing now accounts for
the majority of completions, as
borrowers use short-term facilities to
manage transitions between fixedrate mortgages or to restructure
investment portfolios.
It’s clear that bridging is no longer
being used simply to rescue deals. It’s
being used strategically, as a flexible
capital management tool.
Competition among lenders has
remained intense. Average monthly
rates have edged down slightly in
recent months, a small but telling sign
of confidence.
Borrowers recognise the value of
that flexibility, and by mid-2025 the
total loan book for the sector had
reached its highest level on record.
These are not the characteristics
of a market under strain, but the
hallmarks of one that has matured.
The Bank of England’s August
decision to reduce the base rate to
4% was the first real sign that the
monetary tide is turning, and it gave
the market a noticeable li. The
September meeting kept rates on hold
at that level, with two members of the
Monetary Policy Commiee voting for
a further cut to 3.75%. The Bank also
confirmed it would slow the pace of
quantitative tightening, a clear signal
of intent to support market stability.
From the conversations I’ve been
having, brokers have already picked
up on that change in tone. There are
more enquiries and the beginnings of
a busier pipeline from the autumn.
Still, challenges remain. Developers
are continuing to manage high build
costs, and lenders are maintaining
disciplined underwriting.
Even so, this is precisely the kind of
environment where bridging comes
into its own. When the direction
of rates is gently downward, but
the timing uncertain, brokers and
borrowers need funding that can
move in step with opportunity when
it arises. Bridging provides that link
– a flexible and dependable option
that allows deals to progress while the
market waits for the next move.
I’ve always found it interesting
how bridging seems to thrive in these
Commercial drives growth
The residential market has provided
some useful context, too. Sales rose
around 17 % in the first half of 2025
compared with a year earlier, and
listings reached their highest level in
seven years.
That activity has helped investors
find stock and supported lightrefurbishment and conversion
projects. Even so, it’s commercial
CONSTANTINOS SAVVIDES
is head of underwriting
at London Credit
transitional periods. When markets
are uncertain, borrowers want
partners who can act with certainty
– that’s the very essence of what we
do. We’re not just funding property,
but giving people the belief to
move forward.
So, while the market may be steady
rather than spectacular, I see that as
no bad thing. A steadier rhythm gives
serious investors room to plan and
execute, and that’s where bridging
comes into its own. It’s the practical
solution that keeps transactions
alive, provides liquidity when others
hesitate, and underpins much of
the progress we’re seeing beneath
the surface.
As we head towards the end of
the year, I suspect many of us will
look back on 2025 as a period of
consolidation and strengthening. For
those of us working in short-term
finance, that’s a story worth telling. ●
November 2025 | The Intermediary
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