Bridging loan sector hits new high – ASTL

Loan books surpass £7 billion for the third consecutive quarter

Bridging loan sector hits new high – ASTL

The UK’s bridging loan sector witnessed a significant uptick in the final quarter of 2023, setting a new record, the Association of Short Term Lenders (ASTL) has reported.

The latest figures, audited from data provided by ASTL members, reveal an 18.4% quarterly increase in loan completions during Q4 2023, amounting to £1.69 billion.

The period also saw bridging loan books expand by 4.2%, reaching a peak of £7.6 billion. This represents notable growth of over 16% compared to the same quarter of the previous year.

Despite these gains, the sector experienced a slight dip in applications, which fell by 1.1% to £9.6 billion in the quarter ending December 2023, when compared to the previous quarter.

The data also highlighted a minor rise in the average loan-to-value (LTV) ratios, which increased to 58.7% from 57.7%.

“The short-term lending market has ended the year strongly, with a fairly large increase in loans written and only a small reduction in the level of applications compared to last quarter,” said Vic Jannels, chief executive of the Association of Short Term Lenders.

“However, compared to the same period of the previous year, application volumes were more than 25% higher in Q4 2023, completions increased by more than 18% and loan books grew by over 16%. Member loan books have now surpassed £7 billion for the third consecutive quarter, setting a new record.

“We believe there is great potential for further, sustainable growth in the market and initiatives such as the Certified Practitioner in Specialist Property Finance (CPSP) will play a big role in helping to achieve this, alongside the continued work we do at the ASTL to raise awareness and consideration of bridging finance among brokers and customers.”

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