The report also found that bridging loan growth had weakened during the same period, with loan volume transacted by contributors dropping by £3.2m compared with Q2 to £181.64m.
Interestingly, regulated bridging loans increased to 42% of total loans, up from 37.5% in Q2.
This trend saw a slightly lower average monthly interest rate in the third quarter of 0.74%.
“We are still seeing strong demand for regulated loans for chain-breaking etc for good clients at low LTVs,” claimed Andre Bartlett, director at Capital B Property Finance.
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“The appetite for lenders for these types of deals remains healthy and rates continue to be consistently low and the competition is still fierce.
"The downside is average completion times for loans is heading in the wrong direction, but that may be due to matters outside of lenders' hands.
“I would love to see the average completion time get down to below 40 days.”
Chris Whitney, head of specialist lending at Enness, said that the cost of funds is no longer a barrier to using a bridging loan, and was actually “knocking on the doors” of some of the more expensive lenders’ commercial term loan pricing.
"A slightly puzzling element in the data is the (yet another) increase in completion times,” he added.
“51 days, in my view, isn’t a typical term we see.
“Although, I think most of us have those deals that do hang around forever, which is quite possibly distorting the headline figures.
“An area to keep a close eye on, I think.”
Bridging Trends collates the figures from lender MT Finance and specialist finance brokers Brightstar Financial, Capital B, Clever Lending, Complete FS, Enness, Impact Specialist Finance, Positive Lending, Y3S and UK Property Finance.