BY: Sunrise Commercial Finance | Specialist Bridging Loan Broker
https://www.sunrisecommercial.co.uk
Summer 2025 is proving to be a breakthrough season for bridging finance across Greater London and the South East.
If you’re a first-time developer or novice property investor, you’re not alone in wondering why bridging loans are everywhere — and whether now is the right time to consider one. At Sunrise Commercial Finance, we’ve been at the centre of this surge and can say this with confidence: bridging has gone from last resort to first strategy.
Below, we answer the top questions we’re getting from investors like you — and show how bridging finance is helping people unlock real opportunities in today’s market.
Why is bridging finance booming right now?
The numbers don’t lie. Bridging loan volumes hit £18.34 billion in Q1 2025 — a 55% jump from the previous quarter. In our own business, 42% of all enquiries so far this year have been for short-term funding. So, what’s driving the spike?
1. Speed and flexibility.
With high interest rates, planning delays, and supply constraints still weighing down the market, developers need to act fast. Bridging lets them do that — whether it’s buying a site, refinancing mid-project, or seizing a time-sensitive opportunity.
2. Pressure on planning.
The slow planning system continues to push more developers toward bridging to secure land or cover costs while waiting for approvals. It’s a smart move that keeps momentum going.
3. Asset transformation.
We’re seeing more conversions, especially from commercial to residential. That means more upfront capital is needed fast — and bridging provides it.
4. Landlords restructuring.
Many landlords in London are using bridging to release capital from existing properties, especially as they prepare for refinancing or property upgrades.
What’s different in London and the South East this summer?
In a word: confidence.
Buyers, investors and developers across London and the South East are using bridging to compete with cash buyers. They’re no longer waiting for traditional lenders — they’re acting.
We’re seeing investors in South London using bridging to upgrade tired flats for young professionals. In Kent and Surrey, developers are acquiring small sites with planning potential and using bridging to cover the gap until permission comes through.
Whether it’s a quick flip, a development exit, or a change-of-use play, bridging is powering the deals that are getting done.
“Can I really compete with cash buyers using bridging?”
Yes — and that’s exactly how many of our clients are doing it.
Bridging gives you speed. When a vendor sees you can complete in days, you get the edge in negotiations — without having to drain your cash reserves.
One client in Hackney used a £450,000 bridge to secure a run-down terraced house ahead of a cash buyer. They later refinanced on a much higher value after a swift refurb. That’s how you turn speed into profit.
“Is bridging risky if I’m new to property investment?”
Not if it’s planned properly.
At Sunrise, we spend time making sure your exit strategy is clear. We break down all costs, timelines, and what’s needed for a successful refinance or sale. No jargon. No guesswork. Just clear advice and real options.
The key is not treating bridging as a last-minute fix. It should be part of your plan from day one.
“How do I know which bridging lender to trust?”
There are more lenders than ever in the market. But not all are equal.
As brokers, we speak directly to decision-makers. That saves time and avoids mixed signals. The best lenders are the ones who answer their phones, commit to their word, and stick with a deal when challenges come up.
At Sunrise, we work with lenders who prioritise reliability over just headline rates. It’s the difference between deals completing — or falling apart.
“I’m a buy-to-let investor. Should I be using bridging?”
If you’re upgrading units, buying at auction, or releasing equity, the answer is often yes.
Bridging helps you fund refurbishments, meet tight deadlines, and reposition properties for higher yields. Many buy-to-let brokers are now placing more bridging deals because it fits naturally into long-term planning.
Our advice: don’t wait for the perfect deal. With the right guidance, bridging can help you move quicker, earn more, and stay ahead of market shifts.
How Non-Dom Tax Changes Are Shaping Investor Behaviour in Summer 2025
The new non-dom tax rules are starting to shake up parts of the London market. From April 2025, the UK government scrapped the long-standing non-dom tax status, meaning overseas investors and foreign nationals now face UK tax on their worldwide income and gains after just four years of UK residence.
Here’s what we’re seeing as bridging specialists on the ground:
- Prime Central London is cooling: Some overseas buyers are holding off on ultra-high-end purchases, especially in Knightsbridge, Mayfair and Belgravia. This slowdown is creating negotiation windows for developers and cash-backed investors.
- Mid-market opportunities are rising: Investors are shifting focus from £10M+ trophy assets to value-add properties in Zones 2–4. They’re looking for stock that can be refurbished, converted or repositioned quickly — a perfect fit for bridging.
- Bridging to restructure portfolios: Some long-term landlords who previously relied on non-dom tax benefits are now refinancing or reshaping their UK assets. Bridging loans are helping them access equity without selling.
- Increased urgency: Overseas buyers and expats with UK ties are accelerating deals before the full tax effects bite. This is pushing up demand for fast completions — another boost for bridging.
Bottom line:
The non-dom tax reform isn’t crashing the market. It’s reshuffling demand, shifting focus from long-term tax sheltering to short-term gains and value creation. That plays directly into the strengths of bridging finance.
What About International Investors? Can They Use Bridging in the UK?
Absolutely — and more are doing it.
At Sunrise, we work with lenders who fund international buyers, expats, and UK companies with overseas directors. Bridging can help them:
- Secure properties before funds are repatriated
- Buy auction properties in the UK from overseas
- Refurb or reposition assets before refinancing into long-term lending
- Act before capital flight from local currencies affects value
We’ve supported overseas clients buying London flats for student accommodation, converting commercial units in Kent, and acquiring income-producing assets in commuter towns. Bridging removes friction and helps them act fast in a volatile FX and tax climate.
Whether you’re a first-time UK developer, international investor, or buy-to-let landlord, bridging finance could give you the speed, certainty, and flexibility you need in 2025.
At Sunrise Commercial Finance, we don’t just compare rates. We build clear, strategic funding plans that help you move faster, reduce risk, and protect your profit.
Call us now or book your free 15-minute call today
📞 https://www.sunrisecommercial.co.uk
We’ll walk you through your options, connect you to the right lenders, and guide you from enquiry to completion.
Quick Bridging Loan FAQ
What is a bridging loan used for in 2025?
Bridging loans are being used to fund refurbishments, auction purchases, planning delays, commercial conversions, and to release capital tied up in existing property.
How fast can I get a bridging loan in London?
Deals can complete in as little as 5–10 working days if documents and valuations are in place. At Sunrise, we help streamline that process.
Can overseas buyers use UK bridging loans?
Yes. Many bridging lenders accept applications from non-UK residents, expats, and international investors. Lending criteria and rates vary, so expert advice is essential.
How do I exit a bridging loan?
Exit strategies include:
- Refinancing into a long-term mortgage
- Sale of the asset
- Releasing equity from another property
Is bridging expensive?
Rates vary, but the cost is weighed against the opportunity. Bridging isn’t for holding assets long term — it’s for unlocking deals you couldn’t access otherwise.
Hashtags:
#bridgingfinance #nonDOMreform #UKpropertymarket #bridgingloans2025 #propertyinvestmentUK #Londoninvestors #southlondonproperty #propertyfinance #commercialloansUK #bridgingbroker #auctionfinance #expatinvestorUK #realestatefunding #shorttermloansUK #sunrisecommercialfinance