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Bridging loans jump by almost a quarter as lockdown restrictions ease: ASTL

Bridging loans jump by almost a quarter as lockdown restrictions ease: ASTL
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Bridging activity could spike as new stamp duty holiday deadline approaches

The new September 30 stamp duty deadline is once again expected to prompt a significant spike in bridging loan application volumes and general bridging finance activity.

Bridging loans increase buyer demand outstrips supply

HomeNewsLoans Bridging lending increases as buyer demand outstrips supply Published: 28/05/2021 Share Data  from the Association of Short-Term Lenders (ASTL) shows the demand from consumers and businesses to get a bridging loan in the UK has increased at the start of 2021.  Applications have exceeded pre pandemic levels by just over a quarter and the value of these was up 18% comparing Q1 2021 to the same period in 2020.  The number of completions in Q1 was also up by just over 10% comparing Q1 2021 to Q1 2020.  However, comparing the number of completions in Q4 2020 to the start of 2021 shows a reduction of 1.9% in completions. This may be due to the heated property market marginally slowing down completion times due to sheer levels of demand and because of multiple applications from brokers to bridging lenders. 

Bridging applications jump by more than a quarter in Q1: ASTL

25 th May 2021 9:42 am Bridging applications jumped by more than a quarter to hit £7.49bn in the first quarter of the year, according to data from the Association of Short-Term Lenders. New loan applications lifted by more than 25.5% in the first three months of 2021, compared to the same period a year ago, which the body says demonstrates “increased demand from customers”. The data shows that the value of new bridging applications in the first quarter of the year was 12.0% higher than the final quarter of last year. These figures are compiled by auditors from data provided by members of the ASTL.

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