According to the latest data from the Association of Short Term Lenders (ASTL), bridging loans reached another record high of £8.1 billion in the first quarter of 2024.
The figures, compiled by accountants using data from ASTL members, show an increase in the size of bridging loans in the first quarter of 2024, by 6.8% compared to the last quarter of 2023, to £8 ,1 billion.
Deliveries in the first quarter of 2024 were £1.51 billion, which was down 10.5% on the December 2023 quarter, but still represents an increase of 6.2% on the same period in 2023.
And the pipeline for new production has been strong, with applications showing a big increase of 17.5% in the first quarter of 2024, compared to the quarter ending December 2023, totaling £11.3 billion.
The ASTL reports that the average LTV for bridge loans in the first quarter of 2024 was 60.5%, up from 58.7% in the December 2023 quarter. While loans in default fell slightly, with a decrease of 8.7% compared to December 2023.
ASTL chief executive Vic Jannels commented: “The latest credit data from ASTL members shows that demand for bridging finance remains strong. Loan portfolios reached £8.1 billion in the first quarter of 2024, which represents the highest level ever, and this is without taking into account the loans of one of our members, who only report their figures on an annual basis.”
He added: “This is an exciting time for the sector. The launch of the Certified Practitioner in Specialist Property Finance (CPSP) last year will play a big role in further improving standards and as an association we are working on upcoming plans that will go a long way in continuing to grow awareness and consideration of bridging financing between brokers and customers.”