It said demand had been supported by a more difficult operating environment for borrowers and intermediaries. Inflation, higher borrowing costs, uncertainty over the Bank of England base rate and geopolitical risks have made transactions harder to complete.
According to the lender, these pressures had led to longer transaction times, less certain completion dates and a greater need for borrowers to adjust plans during the process.
Bridging loans are being used for a wider range of purposes, including chain breaks, time-sensitive purchases, refinancing and refurbishment funding. The lender said this reflected the need for faster funding where mainstream lending may not be able to meet changing requirements.
“What we’re seeing isn’t just growth in the bridging sector, it’s a reflection of how the wider property market has evolved,” said Jonathan Samuels (pictured right), chief executive of Octane Capital.
“Transactions are taking longer, conditions are shifting more frequently, and borrowers are having to navigate a far more complex environment than they were even a few years ago. Bridging finance has stepped up and into that gap, providing the speed and flexibility required to keep deals moving when more traditional routes can’t keep pace.