ASTL

Bridging loan books rise to £4.7bn, but loan applications fall



674_2021-10-11-04-51-54pm.gif
Bridging completions grew by 23.2% in Q2 2021 to £1.1bn, according to the latest figures by the ASTL.

The rise in completions meant that bridging loan books rose to over £4.7bn, up from £4.4bn in Q1. 

Vic Jannels, CEO at the ASTL (pictured above), believes that the increase in completions represented improving conversion rates in Q2, after having worsened in the first three months of the year to 12%

However, applications fell by 1.7% during the period to £7.36bn, compared to the first quarter.

Applications for the year ending 30th June 2021 were still 26.9% higher year-on-year.

Since Q4 2020, the value of bridging loans in default has continued to reduce, with a 7.6% decrease on Q1 2021.

The number of repossessions also dropped this quarter, suggesting the continued easing of coronavirus restrictions is having a positive effect.

Average LTVs also showed a small increase since Q1, now standing at 59.8%.

“The falling value of loans in default and number of repossessions reflect the quality of lending and shows that the market is continuing to grow in a sustainable way and enhance its ever-improving reputation,” said Vic.

“In this growing market, ASTL lenders continue to represent a benchmark of quality and customer focus, providing brokers with a source of flexible short-term finance that they can trust.”

Leave a comment