Despite a weaker property market, bridging sector posts another strong performance
Bridging mortgage loan books continued to grow in the second quarter of this year, increasing by more than 5% to an all-time high of just over £7.1 billion, member lenders of the Association of Short Term Lenders (ASTL) have reported.
The figures, compiled by auditors from data provided by the bridging lenders, also showed that bridging completions totalled £1.3 billion in Q2 2023, representing a 5.3% decline on the previous quarter.
ASTL said this drop was reflected in applications, which were £9.2 billion in the quarter ending June 2023 – a decrease of 5.9% compared to the previous quarter.
Average LTVs also fell slightly to 57.8% in Q2, which is a reduction from 59.3% in Q1.
“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 £7 billion for the first time,” said Vic Jannels (pictured), chief executive of the Association of Short Term Lenders.
“While 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.
“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.”
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