Bridging completions rose 17.4 per cent from Q1 to just over £1.2bn in Q2, exceeding £1bn for a fifth consecutive quarter, ASTL said. That was 10.4 per cent more than in the second quarter of 2021.
Applications also rose, climbing 18.7 per cent from Q1 to £7.5bn in Q2, an increase of 2.2 percent from the same period a year earlier. The size of loan books rose 28 per cent in Q2 compared with the same period last year.
Vic Jannels (pictured), the ASTL chief executive, said: “The latest ASTL Data Survey shows a very strong set of results, with bridging applications, completions and loan books all rebounding significantly on the first quarter of the year. As a result, the value of loan books has now reached a record level of more than £6bn. This demonstrated the resilient nature of this market, which continues to grow and mature, attracting a wider number of customers.
“However, there is reason for caution. The value of loans has started to rise, as have repossessions, and in the current economic climate, it is vital that bridging lenders continue to operate in a way that is responsible and sustainable.”
Default bridging loans on the up
The data also showed bridging loans in default in Q2 rose 31.5 per cent compared with Q1, and increased 1.9 percent compared with the second quarter last year.
Jannels said the trade association was working with the Financial Intermediary and Broker Association (FIBA) and the London Institute of Banking and Finance (LIBF) to offer an e-learning course on industry standards later this year.
