New analysis from Pure Property Finance, based on real-client activity between the years 2023-2025, shows how borrowing behaviour has evolved as homeowners, investors, and developers respond to ongoing certainty.
In 2023, borrowing was primarily driven by investment purchases and home improvements, which clearly showed a focus on growth and asset enhancement.
However, by 2024, this had then shifted towards consolidating unsecured credit and purchasing properties at auction, highlighting mounting financial pressure for some households alongside opportunistic behaviour from experienced investors targeting distressed assets.
Last year, credit consolidation remained the most common reason for borrowing, but home improvements took the second most popular reason for lending, suggesting that affordability pressures continued to persist, although confidence began to recover as homeowners invest in improving and maximising the value of their properties.
As for the average loan size, this has increased steadily over the past three years.
- 2023 – £139,624
- 2024 – £143,432
- 2025 – £169,570
While there has been a slowdown in house price growth, the average loan value has increased by 21% over the course of the three years.
Tom Rowlands, specialist property finance broker, says:
“The stabilisation, and more recently the reduction, of interest rates by the Bank of England has helped improve affordability and encouraged borrowers to take a longer-term view when accessing finance. This means they’ve been able to borrow more, paying slightly less interest and finally make any big home improvements or house purchases that they’ve been putting off for the last few years.”
Alongside shifts in borrowing behaviour, speed has become an increasingly important differentiator.
Between 2023 and 2025, average application times improved by 10 percent for bridging finance, 15 percent for development finance, 25 percent for residential mortgages and 55 percent for secured loans.
Commenting on the changes, Tom also says:
“What we’ve seen over the last few years is a clear shift in mindset. Clients aren’t just borrowing to push ahead at all costs anymore. In 2024 especially, a lot of conversations were about stabilising finances, consolidating debt and protecting existing assets. More recently, we’re seeing cautious confidence return. People are still price-conscious and risk-aware, but they’re starting to think strategically again, whether that’s improving their home, refinancing more efficiently or taking advantage of opportunities where value exists.
Speed and clarity have become just as important as price. Clients want to know where they stand quickly, and they expect a smoother, more joined-up process. That’s driven big changes in how brokers, lenders and partners operate.”
At Pure Property Finance, continued investment in technology, including API-led data transfer, robotic process automation, digital application journeys and secure document handling, has played a central role in improving turnaround times.
Further integrations with key partners, including Planning Portal, are planned as part of the firm’s 2026 strategy, aimed at reducing duplication and friction across increasingly complex application journeys.
Taken together, the data paints a picture of a market that has been under pressure but remains fundamentally resilient.
UK property values continue to provide a strong foundation, enabling borrowers to use built-up equity to consolidate, invest and reposition, even as economic conditions remain fluid.
For brokers, lenders and advisers, the message is clear. Understanding shifting borrower motivations, prioritising efficiency and using insight-led advice will be critical as the market continues to evolve.