News

Bridging applications and completions in Q1 2022 have fallen back from their record highs in Q4 2021, but remain strong compared to the long-term average, according to the latest data from the Association of Short Term Lenders (ASTL).

The figures, compiled by auditors from data provided by members of the ASTL, show that bridging completions were £1.04bn in the quarter ending March 2022, a fall of 15.8% on the previous quarter, when they reached £1.24bn. However, they remain higher than the same quarter last year when completions were just over £900m and completions have now been more than £1bn for four consecutive quarters for the first time since records began.
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Family Finance has become the latest lender to join the Association of Short-Term Lenders (ASTL).

Family Finance was founded in 1953 by a consortium of local businesspeople in South Wales, providing finance for families in the area. Now in its seventh decade of trading, the company continues this tradition whilst also covering a wider demographic and geographical area, and whilst now also providing finance for commercial customers. Family Finance now caters for more than 12,000 customers throughout South Wales, the West Country, the Midlands, and the north of England. All lending is advanced with Family Finance as the principal lender.

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By: Vic Jannels, CEO at the Association of Short Term Lenders (ASTL)

As a market that is predominantly dominated by intermediary distribution, short-term property finance faces a challenge, in that providers of products and services effectively have two customers – the intermediaries and the end customers. It is important they have an in-depth understanding of both, but sometimes it can be easier to develop a more thorough understanding of the more immediate customer, the intermediary.

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Glenhawk has become the latest lender to join the Association of Short Term Lenders (ASTL).

Glenhawk provides swift, competitive short-term property finance to help clients realise opportunities and progress developments. The lender has built its proposition on an accessible senior-leadership team, who are deeply experienced in the real estate and financial worlds and dedicated underwriters able to guide and support every loan from the initial enquiry through to the loan completion.

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 The latest ASTL data shows a record period for bridging lending in the last quarter of 2021, with completions and applications both reaching an all-time high.

The figures, compiled by auditors from data provided by members of the Association of Short-Term Lenders, show bridging applications reached a record high of £12.7bn in the quarter ending December 2021 – an increase of 65.4% on the previous quarter, which itself was a record period at the time.

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At the ASTL, we regularly hold joint events, with our colleagues from FIBA, for a selected group of invitees from around the industry. The events provide an excellent opportunity to discuss current industry issues and best practice in a confidential environment. And so, whilst the individual comments and intimate details from our latest event remain in-house, I think it’s worth reviewing the topics that were discussed.
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Set against the constant change of the previous 12 months, the bridging market has steered a steady course in recent weeks. The ASTL’s lending figures for the first quarter of 2021 showed that bridging completions increased by 10.7% on the same period in 2020 and that the value of loan books was up by 3.5%. Applications are continuing to climb faster than completions, which will be of concern for lenders that are currently underwriting £7 for every £1 that they complete, but the value of loans in default has fallen to just 2.2% higher than in March 2020, so there are plenty of reasons to be positive.
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At the ASTL we always look for opportunities to work collaboratively with our fellow associations in the specialist finance and intermediary lending markets, where it is appropriate to do so for the benefit of our members. This has driven a number of initiatives, such as a joint submission with FIBA regarding the stamp duty holiday and Robert Sinclair from AMI making a presentation at our annual conference.
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New bridging applications achieved £7.49bn in Q1 2021, an increase of more than 25.5% on the same period in 2020.

This is according to the latest figures compiled by auditors from data provided by members of the Association of Short-Term Lenders. The data shows that the value of new bridging applications in Q1 2021 was 12.0% higher than in Q4 2020 and 17.9% higher on the previous year in the 12-month period ending 31st March 2021, reflecting feedback from the market demonstrating increased demand from customers.
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There are so many more parties involved in the bridging process than simply a lender, customer and intermediary. Whether it’s facilitating originations, enabling completions, or supporting collections and recovery, there are many businesses that ensure our industry is able to function effectively and, at the ASTL, we make it our business to understand and educate about the role of those businesses and why they are important.

One question that arose recently was, do we really understand what receivers do? The role of a receiver has actually been around in one way or another for hundreds of years, but it’s one area of the process that I believe is still open to misunderstanding.
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