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Bridging loan books breach £8bn in Q1 – ASTL

  • 30/05/2024
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Bridging loan books breach £8bn in Q1 – ASTL
Bridging loan books have hit £8.1bn in the first quarter of this year, another record high, according to a report.

Data from the Association of Short Term Lenders (ASTL), which collates data from members, shows that total loan book size has ticked up by 6.8% compared to the final quarter of last year.

Completion in the first quarter of year stood at £1.51bn, a fall of 10.5% on the prior quarter but 6.2% up on the same period last year.

The pipeline for new business is also described as “strong”, with applications up 17.5% on the prior quarter in Q1 2024, coming to £11.3bn.

The average loan to value (LTV) for bridging lending is 60.5%, an increase from 58.7% in the last quarter of 2023.

Loans in default fell back by around 8.7% in Q1 2024 compared to the last period of 2023.

Vic Jannels, CEO of the ASTL, said: “The latest lending data from members of the ASTL shows that demand for bridging finance continues to be strong. Loan books reached £8.1bn in Q1 2024, representing the highest level on record, and this is without accounting for the lending of one of our members, which only reports its figures on an annual basis.

“Applications increased by 17.5% on the previous quarter and, while the value of loans written decreased by 10.5%, there was still £1.51bn of lending during the quarter, which is the second-highest amount recorded in these surveys.”

He added: “This is an exciting time for the sector. The launch of the Certified Practitioner in Specialist Property Finance [CPSP] last year will play a big role in helping to further enhance standards and, as an association, we are working on upcoming plans that will go a long way in continuing to grow awareness and consideration of bridging finance amongst brokers and customers.”

Earlier this year, this publication revealed that over 100 people have passed the CPSP since it was launched as a joint initiative with the ASTL, Financial Intermediary and Broker Association (FIBA) and London Institute of Banking and Finance (LIBF).

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