Bridging loan books registered a 5% increase in the second quarter, totalling an all-time high of £7.1bn, according to new data from the Association of Short-Term Lenders (ASTL).

The figures, compiled by auditors from data provided by members of the ASTL, showed that bridging completions reached £1.3bn in the Q2, representing a slight fall of 5.3% on the previous quarter.

This small drop was also reflected in bridging applications during Q2, which reached £9.2bn over the quarter – a decrease of 5.9% compared to Q1.

Average loan-to-values (LTVs) fell slightly to 57.8% in Q2, which represented a reduction from 59.3% in Q1.

CEO of the ASTL, Vic Jannels, commented: “The short-term lending sector continued to demonstrate its versatility and resilience in the second quarter of this year, during which period members combined loan books have exceeded £7bn for the first time.

“Whilst applications and completions were slightly down on the previous quarter, they were both higher than the same period last year. Given that we are still faced with the vagaries of an uncertain economy, and faltering property market, this represents another very strong performance.

“We cannot ignore the wider economic environment, which is putting greater pressure on exit strategies and so it’s important that lenders continue to take a robust approach to underwriting to help ensure the market continues to grow in a cautious and sustainable way. In doing this, the market will be well placed to help even more customers to finance transitional periods in the future.”

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