Bridging loan books reach record £7.1bn against fall in completion and application values – ASTL

Despite this, data collected by the Association of Short Term Lenders (ASTL) showed that the value of applications and completions declined over the three-month period. 

During the quarter, the value of bridging completions fell by 5.3 per cent to £1.3bn when compared to the previous quarter. Meanwhile the value of applications contracted by 5.9 per cent quarter-on-quarter to £9.2bn. 

Average loan to values (LTVs) also dropped from 59.3 per cent in Q1 to 57.8 per cent in the three months to June. 

Vic Jannels, CEO of the ASTL said: “The short-term lending sector continued to demonstrate its versatility and resilience in the second quarter of this year, during which period members combined loan books have exceeded £7bn for the first time. 

“Whilst applications and completions were slightly down on the previous quarter, they were both higher than the same period last year. Given that we are still faced with the vagaries of an uncertain economy, and faltering property market, this represents another very strong performance.” 

He added: “We cannot ignore the wider economic environment, which is putting greater pressure on exit strategies and so 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.  

“In doing this, the market will be well placed to help even more customers to finance transitional periods in the future.”