The quarterly Bridging Trends report published by short-term finance lender mtf revealed that the loan volume in Q1 2018 – the highest recorded since the report was launched three years ago – was almost double the £80.47m of lending recorded during Q1 2015.
The proportion of regulated loans facilitated in Q1 2018 increased to 43.7% from 42.6% in the previous quarter.
- Industry reacts to slow UK economic growth
- Five-year fixed BTL rates continue to slide
- Will the bridging boom continue?
Average monthly interest rates remained at 0.83% for the second consecutive quarter, while average completion times reduced from the 50 days registered during Q1 2017 to 48 days.
Average LTV levels have also increased to 49.1% from 46.2% in Q1 2017.
Joshua Elash, director of bridging at mtf, said: “It is particularly interesting that pricing has remained stable, despite an increase in regulated lending.
“This suggests that the recent downward pressure on rates might be easing and in the unregulated space going the opposite way.”
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