Bridging loans

Bridging loan volume reaches £154m in Q1

Bridging loan volume hit £154.02m in Q1 2018, up from the £118.79m recorded for the same period last year, according to the latest research.

The quarterly Bridging Trends report published by short-term finance lender mtf revealed that the loan volume in Q1 2018 – the highest recorded since the report was launched three years ago – was almost double the £80.47m of lending recorded during Q1 2015.

The proportion of regulated loans facilitated in Q1 2018 increased to 43.7% from 42.6% in the previous quarter.

Average monthly interest rates remained at 0.83% for the second consecutive quarter, while average completion times reduced from the 50 days registered during Q1 2017 to 48 days.

Average LTV levels have also increased to 49.1% from 46.2% in Q1 2017.

Joshua Elash, director of bridging at mtf, said: “It is particularly interesting that pricing has remained stable, despite an increase in regulated lending.

“This suggests that the recent downward pressure on rates might be easing and in the unregulated space going the opposite way.”

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