According to the latest figures from Association of Short-Term Lenders (ASTL), bridging loans written in the second quarter came to £1.1bn, which is up 23 per cent compared to the first quarter of this year, and more than double the figure for the second quarter last year.
Consequently, bridging loan books currently stand at £4.7bn, which is up by 7.7 per cent compared to the first quarter and up 4.5 per cent compared to the same period last year.
The report noted that applications fell slightly compared to the first quarter to £7.36bn, but compared to the same period last year this was up by a third.
It continued that loans in default for the second quarter decreased by 7.6 per cent on the first quarter, but were up by four per cent compared to the same period last year.
The report said the fall in defaults and repossessions was suggestive that easing of Covid-19 restrictions were having a positive effect.
The average loan to value of bridging loans also climbed slightly to around 59.8 per cent.
ASTL’s chief executive Vic Jannels (pictured) said the figures were “pleasing”, pointing to growing completions and falling defaults and repossessions.
He explained: “Not only is the market continuing to grow and show signs of ongoing recovery as we emerge from the pandemic, but the increase in completions also represents improving conversion rates, which is good news for brokers, lenders and customers.
“The falling value of loans in default and number of repossessions also reflect the quality of lending and shows that the market is continuing to grow in a sustainable way and enhance its ever- improving reputation.”
The figures are compiled by auditors from data provided by ASTL members.