UK bridging loan books hit new high

Latest ASTL data shows positive trends for bridging finance

UK bridging loan books hit new high

Bridging loan books hit a record high of £8.1 billion in the first quarter of 2024, according to data from the Association of Short Term Lenders (ASTL).

Auditors compiled the figures from ASTL member data, showing a 6.8% increase in bridging loan books from the previous quarter. Completions in Q1 2024 reached £1.51 billion, a 10.5% decrease from the previous quarter but a 6.2% rise from the same period last year.

New business pipeline remained strong, with applications increasing by 17.5% from the previous quarter, totalling £11.3 billion.

The ASTL reported an average loan-to-value (LTV) ratio of 60.5% for bridging loans, up from 58.7% in the last quarter of 2023. Loans in default decreased by 8.7% compared to the previous quarter.

“The latest lending data from members of the ASTL shows that demand for bridging finance continues to be strong,” said Vic Jannels (pictured), chief executive of the Association of Short Term Lenders. “Loan books reached £8.1 billion 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 £1.51 billion of lending during the quarter, which is the second highest amount recorded in these surveys.

“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 among brokers and customers.”

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