The bridging market delivered “strong growth” in the third quarter of 2021, according to the Association of Short-Term Lenders (ASTL).

Data from the ASTL has revealed that applications and loan books were both higher than in Q2, while the value of loans in default fell for the third consecutive quarter.

The figures, compiled by auditors from data provided by members of the ASTL, confirmed that bridging applications reached a record high of £7.72bn in Q3 2021, an increase of 4.9% on the previous quarter.

While the value of completions in Q3 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 also showed that the value of loan books was £5.07bn at the end of September, representing an increase of 6.8% on the previous quarter, as well as a jump of 11.1% on the same quarter in 2020.

Furthermore, 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.

“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,” commented ASTL CEO, Vic Jannels.

“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.”

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