Bridging market hits record growth in Q4 2021

By Bridging Loan Directory 1st March 2022

The latest ASTL data shows a record period for bridging lending in the last quarter of 2021, with completions and applications both reaching an all-time high.

The figures, compiled by auditors from data provided by members of the Association of Short-Term Lenders, show bridging applications reached a record high of £12.7bn in the quarter ending December 2021 – an increase of 65.4% on the previous quarter, which itself was a record period at the time.

The value of completions in Q4 2021 increased by 19% on Q3, reaching a new record of £1.2bn. And this led to another increase in the value of loan books, which reached £5.08bn at the end of December, representing a slight on the previous quarter, which was £5.07bn.

According to the data, average LTVs increased slightly from 59.8% in Q3 to 61.2% in Q4.

The value of loans in default continued to fall, for the fourth consecutive quarter, showing a decrease of 7.6% over September 2021. The number of repossessions also fell slightly, indicating a continued robust approach to underwriting.

Vic Jannels, CEO of the ASTL says:

“I am often asked to provide my thoughts on the health of the current bridging market, but these statistics are more powerful than my words ever could be.

We are in a position where loan books are at a record level, completions are higher than they ever have been and there is a strong pipeline with record and rising application numbers.

Even more positive, however, is the indication that this lending is being delivered without any significant advance up the risk curve.

LTVs have crept up but remain modest and falling values of loans in default and numbers of repossessions indicate that risk is being well managed.

These lending figures are a clear sign that bridging is becoming more established as an invaluable piece of a broker’s toolbox for a range of purposes.

And, as more brokers engage with this fantastic market, we would always recommend that they seek out ASTL lenders as a benchmark of quality and customer focus.”