Bridging's £46m Summer Report

Bridging's £46m Summer Report


After taking a hiatus during the traditionally quieter months, the Association of Bridging Professionals (AOBP) is proud to release its special summer bumper edition of the Monthly Market Report, covering the period from June to August 2012.

For the uninitiated, these statistics are obtained by gathering lending information from a selection of AOBP loan distributors and packagers. Although it is a sample set and does not represent the sector as a whole, it is a report which is indicative of market trends and remains a valuable set of quantifiable figures within bridging and short term finance.
The sample set has changed over the course of the Market Report’s published history and currently there are 12 of the leading distributors contributing their figures relating to their completed bridging business levels.
The total lent for June, July and August collectively is £45,729,000, spread across 14 lenders.  Out of this largely unchanged list, 10 are FSA authorised which has led to a record 17.39 per cent of the total volume being conducted as regulated.  The latest lender to gain FSA permissions is Dragonfly Property Finance and its first regulated completions are due to be reported this month or early next.
Aside from the Private Funders category, which accounts for £10,687,000 worth of lending done by private individuals, investors and finance providers, the firm to top the table is Shawbrook Bank with an 18.94 per cent stake of the total volume.  Interestingly, this is a brand new entry in the form of Shawbrook, as it has not yet featured on the Market Report. With a strong emphasis on its ‘strategic partnerships’ and distributor relationships, Shawbrook’s appearance as leader of the summer table indicates that this approach is bearing fruit in a big way.
Positions two and three go to Dragonfly and Masthaven; the former has consistently set the pace and the latter has steadily climbed since the beginning of the year.  Through our panel, they have lent £7,244,000 and £3,429,000 respectively and together have made up 23.34 per cent of the total volume.
Cheval and Precise Mortgages both come in at 11.59 per cent of cases each, the highest on the report, although their volumes are lower than those of the top three lenders. It can be derived from this that these firms favoured the smaller cases during this period as opposed to the likes of jumbo bridging lenders Omni Capital and Shawbrook whose substantial volumes are made up just 2.90 and 3.62 per cent of cases respectively.
The AOBP Monthly Market Report will continue to gather this information from its intermediary partners, reflecting on the months that were, for publication in the Association’s Informer newsletter. Watch this space for further information.
Table to show the total volume vs percentage of cases completed from June to August 2012*
Lender Cases (%) Volume (%) Volume (£'000)
Dragonfly Property Finance 10.14 15.84 7,244
West One Loans 6.52 4.29 1,961
Lancashire Mortgage Corporation 5.07 1.33 0,610
United Trust Bank 8.70 4.98 2,237
Cheval 11.59 5.85 2,677
Masthaven 7.25 7.50 3,429
Commercial Acceptances 3.62 2.88 1,318
Private Funders 21.74 23.37 10,687
FBSE Finance 5.07 2.21 1.012
Shawbrook 3.62 18.94 8.663
Bridgebank Capital 0.72 0.11 0.50
Omni Capital 2.90 7.00 3.200
Precise Mortgages 11.59 5.26 2.408


Table to show the percentage of regulated vs unregulated loans completed during June to August 2012*

Regulated Unregulated
17.39 82.61

The results shown above are calculated using a significant data set of the AOBP members and are processed by independent auditors. The results are based on a sample data set of the short term lending market and are in no way representative of the short term industry as a whole. 


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