Bridging market continues strong performance in Q3 2021
The latest ASTL data shows the bridging market continuing to deliver strong, sustainable growth in Q3 2021, with applications and loan books both higher than in Q2, while the value of loans in default has fallen for the third consecutive quarter.
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 £7.72bn in the quarter ending September 2021, an increase of 4.9% on the previous quarter.
While the value of completions in Q3 2021 dropped by 6.1% on Q2, completions still totalled £1.0bn in the quarter, meaning that the value of loan books now stands at more than £5bn for the first time.
The data shows that the value of loan books was £5.07bn at the end of September, representing an increase of 6.8% on the previous quarter and a jump of 11.1% on the same quarter last year.
According to the data, average LTVs continued to hold at 59.8% in Q2 and the value of loans in default fell for the third consecutive quarter, showing a decrease of 4.1% over Q1 and a fall of 3.6% on the same quarter last year.
Vic Jannels, CEO of the ASTL says: “The Q3 2021 lending figures continue to paint a picture of a market that is enjoying strong growth whilst maintaining a robust approach to risk, with applications increasing and loan books topping £5bn for the first time, at the same time as defaults falling for the third consecutive quarter and LTVs remaining stable.
“From experience, we know that more brokers are engaging with the bridging market and analysis of our data shows growth across different elements of short term lending, including development finance and second charge bridging. It’s clear that bridging is becoming more established as an invaluable piece of a broker’s toolbox for a range of purposes. We would always recommend that ASTL lenders continue to represent a benchmark of quality and customer focus, for those brokers.”
Q3 2021 Trends
| Quarter ended 30 Sep 2021 compared to Quarter ended 30 Jun 2021 | Quarter ended 30 Sep 2021 compared to Quarter ended 30 Sep 2020 | Year ended 30 Sep 2021 compared to Year ended 30 Sep 2020 | |||
| Loans written (£) | (6.1%) | 53.2% | 30.9% | ||
| Loan book (£)* | 6.8%* | 11.1%* | 11.1%* | ||
| Applications (£) | 4.9% | 0.8% | 19.0% | ||
| Loans in default (£)* | (4.1%) | (3.6%) | (3.6%) | ||
| *As at the end of the period
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