Bridging applications hit record £7.6bn in Q3, but completions still down on last year

Bridging applications have reached their highest ever level in Q3 2020, revealed the ASTL.

According to the latest figures compiled by auditors from data provided by ASTL members, applications totalled £7.6bn in Q3 2020, up 39.1% on the previous quarter, and by 25.7% on the same period in 2019.

However, completions only stood at £680m, still down by 27.6% on the same period last year, despite the fact that they have seen a 44.8% increase on Q2 2020.

The value of loans in default remained high, with a 3.3% rise from Q2 2020, and an increase of 23.1% on Q3 2019, while loan books showed a small increase (0.6% over Q2 2020 and 5% on Q3 2019), remaining at approximately £4.5bn.

Average LTVs remain at sub-60%, despite being slightly higher than the previous quarter.

Vic Jannels, CEO at the ASTL (pictured above), said: “The Q3 lending figures reflect feedback from the market demonstrating that this has been a hugely busy period for bridging lending.”

He added that, while we’re unlikely to see another overhang as a result of the first lockdown, since the market remained open during the second lockdown, people must still remain cautious about the future, as the economic uncertainty still remains.

“That said, if the recent positive news about vaccines come to fruition, and lenders continue to underwrite loans sensibly, while taking a proactive and collaborative approach to customers in default, then there is no reason why this quarter’s figures should not prove a strong foundation for a robust and sustainable recovery,” he continued.

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