Bridging completions down 56% and value of loans in default up 5.4% in Q2

In Q2 2020, bridging completions dropped by 56% and the value of loans in default crept up by 5.4% compared to Q4 2019, according to the latest figures from the ASTL.

The figures for the ASTL data survey are being compared to Q4 2019 as the Q1 2020 survey was skipped due to Covid-19 and the national lockdown.

Bridging completions for Q2 stood at £470m, with applications up by just over 1%, while loan books showed a small decrease but remained at £4.5bn. 

Average LTVs increased slightly, but continued to remain at sub 60%.

“This was an unusual data survey for a number of reasons and, comparing the June 2020 quarter with December 2019 shows a variety of ups and downs,” said Vic Jannels, CEO at the ASTL (pictured above).

“It is difficult to ascertain any real trends at this stage given the impact of lockdown but, at the moment, the signs for new business volumes are all positive.

“One area of concern is the value of loans in default, which showed a small increase in Q2. 

“It is uncertain how long the economy will be affected by Covid-19 and it is possible that the situation regarding defaults could worsen, particularly given the enforcement moratorium and delays that lenders are facing with collections activity.”

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