Latest data from the Association of Short Term Lenders (ASTL) has revealed that bridging loan books reached another record high in the fourth quarter of 2023.
The figures, compiled by auditors from data provided by members of the ASTL, show an increase in completions in the fourth quarter of 2023, rising by 18.4% on the third quarter of the year to reach £1.69 billion.
Loan books also continued to rise in Q4 2023, increasing by 4.2% to reach new high of £7.6 billion, which represents an increase of more than 16% on the same period the previous year.
Applications fell slightly by 1.1% compared to the quarter ended September 2023 and totalled £9.6bn in the quarter which ended December 2023.
Data from the ASTL shows that average LTVs increased slightly to 58.7%, up from 57.7% in the third quarter of the year.
Vic Jannels (pictured), CEO of the ASTL, said: “The short term lending market has ended the year strongly, with a fairly large increase in loans written and only a small reduction in the level of applications compared to last quarter.
“However, compared to the same period the previous year, application volumes were more than 25% higher in Q4 2023, completions increased by more than 18% and loan books grew by over 16%. Member loan books have now surpassed £7bn for the thirds consecutive quarter, setting a new record.
“We believe there is great potential for further, sustainable growth in the market and initiatives such as the Certified Practitioner in Specialist Property Finance (CPSP) will play a big role in helping to achieve this, alongside the continued work we do at the ASTL to raise awareness and consideration of bridging finance amongst brokers and customers.”