astl interview

Up until the beginning of May, the Bridging loans market unlike other specialist sectors was largely unregulated and was in many ways an unknown entity.
The astl was set up to rectify this as it focuses solely on the short term lending market and is made up of over 20 lenders. The association came in the wake of the credit crunch, and we put some questions to the CEO Adrian Bloomfield as to the success so far and the future plans of the astl.

1. Have you seen an increase in popularity of bridging loans in the past ten months?

Definitely - with mortgage funding being tight and commercial bank lending being more restricted, astl members have reported an increase in the level of applications for loans. We expect to publish industry data periodically - starting at end of July 08.

2. Was the association set up at this time for any particular reason? I.e the credit crunch?

astl's recent set up was not specifically in response to credit crunch - members had been talking about it for a long time. However it has proved a good time to reinforce our most respectable objectives.

3. To what extent do you feel the astl has changed people’s perceptions of the bridging loans market?

As the astl is so newly formed, it is a bit early in our development to have changed perceptions yet. Over time we will aim to meet our objectives and deliver an even more co-ordinated, well defined, self regulated and transparent industry.

4. Why is it so important to regulate the industry and what positive effect do you see this regulation having on the industry?

Transparency and fair dealings can only be a positive. Our members (all genuine firms) want to distance themselves from any misbehaviour and/or unscrupulous practices and astl allows them to do so.

5. In today’s market for the intermediary, do you believe the bridging loans sector is a rival to the mainstream mortgage market?

I think there are two distinct markets - and our members (by definition) operate the industry providing short term loans (usually up to a year). This is in itself a major market. There is of course another market - offering long term loans (up to 25 years). The two work in harmony and are accessed by borrowers for separate, complementary reasons.

6. Are you looking to recruit more bridging companies to join the astl, if so which?

Yes - we'd like as many members as possible in order to have the highest possible level of representation of short term lenders. We seek all member prospects that are lenders, share our values, and objectives; and are willing to pay their share of the costs of the association.


7. Do you feel the astl has received positive feedback since being introduced last month?

Very much so - from everyone - including CML, other trade associations and the financial press. astl is grateful to have been so well received.

astl’s main initial objectives

Create group” of “appropriate” members, with common interest

Collect and distribute industry statistics and data

Introduce and police code of conduct

Protect members interests (including fraud prevention)

Lobby and deal with external relations (press/regulators)

Give confidence to outside world (especially financial community and borrowers)