Bridging lending up 23.2% in Q2 2021
The latest ASTL data shows an almost universally positive set of results for bridging lending in Q2 2021, with completions increasing, applications remaining strong and defaults falling.
The figures, compiled by auditors from data provided by members of the Association of Short-Term Lenders, show bridging completions were £1.1bn in Q2 2021, an increase of 23.2% on Q1.
Bridging loan books reflect the increase in completions and now stand at over £4.7bn.
Applications fell slightly, by 1.7% to £7.36bn, compared to Q1 but applications for the year ending 30 June 2021 were still 26.9% higher than applications in the year ending 30 June 2020. While average LTVs showed a small increase since the March 2021 quarter and now stand at 59.8%.
The value of loans in default continues to fall, showing a decrease of 7.6% on Q1 2021 and the number of repossessions also fell again this quarter, suggesting the continued easing of coronavirus restrictions is having a positive effect.
Vic Jannels, CEO of the ASTL says:
“The Q2 2021 lending figures are pleasing for a number of reasons. Not only is the market continuing to grow and show signs of ongoing recovery as we emerge from the pandemic, but the increase in completions also represents improving conversion rates, which is good news for brokers, lenders and customers.
The falling value of loans in default and number of repossessions also reflect the quality of lending and shows that the market is continuing to grow in a sustainable way and enhance its ever-improving reputation.
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.”