The ASTL reports that bridging loan books have soared to a new high of £7.3 billion. This marks a 2% increase from the previous period, showcasing the sector’s robust growth despite broader market challenges.
Increase in Applications and Completions
Applications for bridging loans have seen a significant rise of £9.7 billion, up 5.6% compared to the quarter ending in June. Moreover, loan completions have reached £1.4 billion, a notable increase of 5.8% from the preceding quarter.
Stable Loan-to-Value Ratios
The average Loan to Value (LTV) ratio in the bridging loan sector remains stable at 57.7%, slightly down from 57.8% in June 2023. This stability indicates a balanced approach to lending in the industry.
Insights from ASTL CEO Vic Jannels
Bucking the Wider Market Trend
Vic Jannels, CEO of ASTL, highlights that the bridging lending sector has defied the wider market’s trends. It has shown substantial growth in the third quarter of 2023, contrasting with the general market’s performance.
Year-on-Year Growth Analysis
Jannels points out that compared to the same period last year, there’s been an over 8% increase in application volumes, nearly 11% growth in completions, and an 18% surge in loan books. This consistent growth has resulted in member loan books exceeding £7 billion for the second consecutive quarter, hitting a new record.
The Versatility of Bridging Finance
Driving Factors of Growth
Jannels attributes the growth of the bridging loan sector to its versatility, especially during volatile economic periods. The sector’s ability to adapt and meet diverse financing needs has been a key factor in its expansion.
The Path Ahead
The ASTL, according to Jannels, plays a crucial role in educating potential customers about bridging finance. This education is essential for realizing the sector’s full potential. Lender members are also contributing by maintaining efficiency in loan processing, adhering to robust risk management, and focusing on customer needs. This balanced approach is paving the way for sustainable, long-lasting growth in the bridging finance market.