The London-based bridging lender said it had decided to join the trade body to work with other lenders in the sector, saying it was important that the bridging sector have a cohesive voice as it evolves.

Christian Faes, managing director of Montello, said: “The short-term lending market continues to provide a very favourable commercial environment. There are a number of new entrants to the market, which has created a positive competitive environment.

“However, there are also a number of challenges that the industry faces, with the onset of domestic UK and European-wide regulation, and the general lack of liquidity in the market. We look forward to actively working with the ASTL on these issues.”

Adrian Bloomfield, chairman of the ASTL, said: “Montello has managed to build a reputable lender in the short-term lending space and we are looking forward to their contribution to our organisation.”