Applications and completions also show strong growth
Bridging loan books continued their upward trend, growing by 2% to reach a new high of £7.3 billion in the third quarter, the latest data from the Association of Short Term Lenders (ASTL) has shown.
Figures compiled by auditors from data provided by members of the ASTL revealed increases across all areas of lending, with applications and completions also showing strong growth during the period.
ASTL said bridging loan applications rose to £9.7 billion, an increase of 5.6% compared to the previous quarter. Completions totalled £1.4 billion, up by 5.8% on the second quarter. Average loan-to-values decreased marginally to 57.7% from 57.8%.
“Bridging lending has again bucked the trend of the wider market to record a period of strong growth in the third quarter of 2023,” commented Vic Jannels (pictured), chief executive of the Association of Short Term Lenders.
“Compared to the same period last year, application volumes have risen by more than 8%, completions have grown by nearly 11% and loan books have swelled by well over 18%. This means that member loan books have exceeded £7 billion for a second consecutive quarter, hitting a new record.”
Jannels added that the significant growth in bridging lending can be attributed to several factors.
“The versatility of bridging finance is being recognised by a growing number of customers and brokers, who are realising the vital role it has to play in financing a period of transition, particularly in an uncertain economic environment,” he said.
“The sector is growing and building a strong reputation. We still have work to do, of course. There remains opportunity to grow the sector to its full potential, through greater education among customers and, at the ASTL, we have an important role to play in this.
“Our lender members will also play their part by continuing to write loans with efficiency while maintaining a robust approach to risk and customer focus. In delivering these things, we can continue to progress our journey of long-lasting, sustainable growth.”
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