Bridging applications and completion values reach highs in Q4 – ASTL

According to data from the Association of Short-Term Lenders (ASTL), applications rose 65.4 per cent quarterly to £12.7bn, surpassing the Q3 record. 

The value of completions increased by 19 per cent on Q3 to £1.2bn. This led to a growth in the value of loan books which reached £5.08bn by the end of December. This was up slightly on the previous quarter’s value of £5.07bn. 

Average loan to values (LTVs) came to 61.2 per cent in Q4, up on 59.8 per cent in Q3. 

The value of loans in default fell for the fourth consecutive quarter, the data showed, with a 7.6 per cent decrease on the previous quarter. The number of repossessions also dropped which the association said indicated a “continued robust approach to underwriting”.  

Vic Jannels (pictured), CEO of the ASTL , said: “I am often asked to provide my thoughts on the health of the current bridging market, but these statistics are more powerful than my words ever could be. We are in a position where loan books are at a record level, completions are higher than they ever have been and there is a strong pipeline with record and rising application numbers.  

“Even more positive, however, is the indication that this lending is being delivered without any significant advance up the risk curve. LTVs have crept up but remain modest and falling values of loans in default and numbers of repossessions indicate that risk is being well managed.” 

Jannels said the lending figures were a “clear sign” that bridging was becoming more established.