Bridging lending continues to grow with completions reaching £1.4bn in Q1 – ASTL

Data from the Association of Short Term Lenders (ASTL) revealed that bridging completions rose by 11.8 per cent compared to the previous quarter to pass £1.4bn. 

Completions were up by 36.3 per cent when compared to Q1 2022, and 20.4 per cent higher than the 12 months to March 2022. 

Applications also increased, with a total value of £9.8bn in Q1 which was 13.1 per cent higher than Q4 2022. It was a 52.1 per cent rise on the same period in 2022, but a slight drop of 0.9 per cent when compared to the 12 months to March last year. 

The value of loan books also increased, with a four per cent jump to £6.8bn, which was a new high for the sector. This was also up by 52.1 per cent when compared to both Q1 last year and the 12 months to March 2022. 

Vic Jannels (pictured), CEO of the ASTL, said: “The somewhat indifferent performance of the economy has not affected demand for short-term finance, which continues to demonstrate that it can provide a versatile source of funding during all economic cycles. Loan books have reached another record high of more than £6.8bn and applications have now shown an increase in each of the last five consecutive quarters.  

“Given the ongoing challenging economic environment, it’s important that lenders continue to take a robust approach to underwriting to help ensure the market continues to grow in a cautious and sustainable way so that it can help even more customers to finance transitional periods in the future.”