Bridging loan applications hit record total in Q3
Bridging loan applications in the third quarter of this year grew by nearly 17% on the same period last year, reaching £6.1bn.
This is according to figures compiled by auditors from data provided by members of the Association of Short-Term Lenders (ASTL), which confirmed that year-on-year annual applications hit nearly £23bn, while completions remained at more than £4bn.
The value of completions in Q3 was nearly £940m, a decrease of 2% on the same period last year, although year-on-year completions were up by 1%.
At the end of the third quarter, bridging loan books totalled £4.3bn, a reduction of 6% compared to last quarter, but an increase of more than 5% on the same period last year.
Benson Hersch, pictured, CEO of the ASTL says:
“This is another strong set of results for the bridging sector. Applications for loans have increased even more steeply than completions, with a staggering record £6.1 billion figure for Q3 2019. This can possibly be ascribed to intermediaries approaching more lenders, or to new lenders getting their part of the pie. Whatever the reason, there is no doubt that the sector is in rude health and estimates of total loans written for the year in excess of £6 billion seem to be on the money.
“Year-on-year figures from the data survey show annual completions by members currently at more than £4bn, and they are on an upward curve. Back in September 2012, total lending was £885 million, with the billion mark being reached at the end of the following quarter.
“This is my final set of quarterly figures as CEO of the ASTL, and it gives me a great sense of pleasure and achievement to leave the industry in such a strong position. It is not, however, the time for complacency. The wider political and economic environment remains uncertain and the challenge for the industry now is to continue this level of activity whilst maintaining high standards of underwriting and customer focus.”