The value of Q3 completions, however, was 6.1 per cent down on Q2, falling to £1bn, according to data compiled by the Association of Short-Term Lenders (ASTL). Despite the quarterly reduction, the total value of bridging loan books this year has exceeded £5bn for the first time.
The value of bridging loan books was £5.07bn at the end of September, an increase of 6.8 per cent on the previous quarter and a jump of 11.1 per cent on the same quarter last year.
ASTL’s data showed average loan to values (LTV) stood at 59.8 per cent.
Meanwhile, loans in default fell for the third consecutive quarter declining by 4.1 per cent over Q3 and 3.6 per cent on the same quarter last year.
Vic Jannels (pictured), chief executive of the ASTL, said: “The Q3 2021 lending figures continue to paint a picture of a market that is enjoying strong growth whilst maintaining a robust approach to risk.
“From experience, we know that more brokers are engaging with the bridging market and analysis of our data shows growth across different elements of short-term lending, including development finance and second charge bridging.”
He added: “It’s clear that bridging is becoming more established as an invaluable piece of a broker’s toolbox for a range of purposes.”