Seven in Ten Brokers Bullish on Short-Term Lending Growth – Black & White Bridging

07 May 2025

Broker confidence surges

Seven in every ten brokers say they are optimistic about the future growth in the short-term lending market.

Research by specialist lender Black & White Bridging found 37 per cent of brokers are positive about the future of the market over the next year with another 35 per cent describing themselves as very positive. Only 7 per cent of brokers described themselves as negative on growth (none were very negative) with the remainer (14 per cent) describing themselves as “neutral”.

When asked if they expected to see an increase in demand for bridging loans over the next 12 months, 74 per cent of brokers said they did. While 24 per cent expected to see no change in deal volumes, only 2 per cent expected to see a decrease in demand.

Overall, brokers said they expected to see 16 per cent more deals in 2025 than 2024 with one in every seven brokers (14 per cent) forecasting demand to increase by more than 20 per cent.

Refurbishment leads demand

Brokers said they thought refurbishment products would be the bridging loan product in the highest demand in the future (33 per cent). More than a fifth (21 per cent) forecast commercial products would be in highest demand, followed by development exit or residential products (both 19 per cent). One in 14 brokers (7 per cent) predicted auction products would see the highest demand in the future.

Damien Druce, chief operating officer of Black & White Bridging, said:

“The overwhelming optimism of brokers highlights not only the resilience of the short-term lending market but also its potential. With 74 per cent of brokers anticipating a rise in bridging loan demand – and refurbishment products leading the charge – it’s clear brokers see significant opportunities ahead. We’re committed to supporting this growth with innovative products and tailored solutions to meet the diverse needs of borrowers in 2025 and beyond.”

Current trading already positive

The positive forecasts come on the back of strong current trading. More than half of brokers (53 per cent) said enquiries were currently higher than they were 12 months ago. While one third (33 per cent) said enquiries hadn’t changed, only one in seven (14 per cent) said enquiries were down.

On the whole brokers, said they had noticed bridging enquiries rise by almost a fifth in the last year (19 per cent).

Damien Druce said:

“Current robust business volumes confirm the market is thriving and suggest these forecasts are not pie in the sky stuff. The surge in current trading - with 53 per cent of brokers reporting higher enquiries over the course of the last 12 months and, overall, a 19 per cent rise in bridging loan volumes over the past year – offers a solid bedrock for optimism about the future. Brokers have every reason to be confident in the opportunities ahead.”

Transparent lending criteria sought

When asked what factors matter when choosing a provider for bridging finance, the most common answer from brokers was “Transparency and certainty of outcome” (58 per cent) followed closely by “Direct access to lending managers and underwriters” (56 per cent) and “Speed” (53 per cent) [respondents could select multiple options]. “An efficient process” was important to 44 per cent of brokers and “Strength of relationship” was selected by 37 per cent. “Reputation” was selected by 30 per cent of brokers.

Commenting on the question, one broker said: “I'm driven by achieving the best possible outcome for my client, what that looks like varies from client to client and deal to deal”. Another added: “Total costs to client”, which suggest that brokers are operating with their client’s best interest at heart.

On what can prove a contentious topic of discussion regarding the presentation of criteria by lenders, 48% of respondents said that lenders should disclose the full range of criteria for their lending products, ideally formatted as ‘from XX, up to XX’. One broker commented: “Lenders should set pricing for LTV and property type”, which suggests that brokers do want full transparency when reading through lender’s criteria.