Bridging loan books grow by nearly 20% in 2019
Bridging loan books grew to £4.5billion in 2019, an increase of 19.7% compared to 2018.
This is according to figures compiled by auditors from data provided by members of the Association of Short-Term Lenders (ASTL), which confirmed that completions in Q4 2019 reached £1.068 billion – an increase of 13.7% on Q3, while average LTVs continued to remain below 60%.
However, applications in the final quarter of 2019 fell by 10.7% on the record-breaking previous quarter.
The data compiled by the ASTL also found that the value of loans in default grew by 13.2% on Q3 2019.
Vic Jannels, CEO of the ASTL says: “The value of outstanding bridging loan books jumped significantly last year driven by both an increase in new business and a trend for borrowers to take bridging finance over longer terms. We did see a fall in applications in the final quarter of 2019 compared to the record breaking Q3, but in the context of both a December General Election and Christmas, this is perhaps unsurprising.
“There is, however, reason to be cautious. The value of loans in default has continued to rise, and there is some evidence that repossessions are also increasing, so it is important that lenders maintain responsible underwriting and collections practices alongside their appetite to continue to grow their lending.”
The ASTL Data Survey: Q4 2019
These figures are taken from the responses from ASTL members, which include most of the key lenders in the bridging market.
PRESS RELEASE WEDNESDAY, 18th MARCH 2020
TFG Capital joins The Association of Short Term Lenders
TFG Capital has become the latest lender to join the Association of Short Term Lenders (ASTL).
TFG Capital was set up in August 2014 to provide funding to companies and high net worth individuals, has advanced more than £90m in loans since its inception and continues to support businesses across the UK daily.
As part of its membership of the ASTL, TFG Capital has signed up to the association’s Code of Conduct, which includes treating customers fairly and requires that all fees are proportionate and openly disclosed.
James Mortimore, MD of TFG Capital, says “We are delighted to be accepted as a member of the ASTL. At TFG we are committed to our clients and our industry and we look forward to working with the ASTL and its members moving forward.”
Vic Jannels, CEO of the ASTL, says: “We are delighted to welcome TFG Capital as the latest lender to join the ASTL. As with all of our members, TFG Capital has demonstrated a customer focus and commitment to high standards that will help to advance the reputation of the industry. We look forward to welcoming new lenders in future weeks as the short term lending sector, and the ASTL, continues to go from strength to strength.”
Press Release: Monday, 16th March 2020
Bridging Vat joins The Association of Short Term Lenders
Bridging Vat has become the latest lender to join the Association of Short Term Lenders (ASTL).
Bridging Vat is a specialist lender advancing short terms loans for the VAT due on commercial property purchases, and provides clients with an in-depth level of expertise in both the funding and recovery of VAT.
It becomes the latest lender to join the ASTL as part of its commitment to transparency, professionalism and treating customers fairly.
Mike Underwood, Sales Director from Bridging Vat, says: “We are very excited and thrilled to join the ASTL, which we see as a natural progression in the growth of our company and a re-enforcement of our ethos of first class customer service, transparent lending practices and high standards of both broker and client communication. We believe that with a growing market and competition, it is more important than ever for lenders to maintain and adhere to high standards of governance, of which the ASTL is the most prominent and well respected organisation in this space. ”
Vic Jannels, CEO of the ASTL, says: “I’d like to welcome Bridging Vat to the ASTL. Like all of our members, Bridging Vat has demonstrated a customer focus and commitment to high standards and I would encourage all brokers seeking a short term lending solution for their clients, to look for ASTL membership as a badge of quality.”
PRESS RELEASE – MONDAY 9TH MARCH 2020
ASTL appoints 2 new Directors
The Association of Short Term Lenders (ASTL) has announced the appointment of two new Directors to its board, following a rigorous process of election by its member firms.
Alan Margolis, Director of Bridging at Masthaven Bank, and Scott Marshall, Managing Director of Roma Finance have both been voted onto the Executive Committee of the ASTL with immediate effect. The elected Directors will serve as Executive Committee members of the ASTL, acting as a guiding influence to provide direction and decision-making for the Association.
In addition to Alan and Scott, current Executive Committee members include James Bloom (Alternative Bridging Corporation), Steven Barber (Bridging Finance Solutions), Gavin Diamond (United Trust Bank), Sarah Jackson (Pivot) and Jonathan Newman (Brightstone Law).
Vic Jannels, CEO of the ASTL, says: “The Executive Committee of the ASTL plays an incredibly important role in helping to shape the future of the bridging industry and I was really pleased with both the number of candidates who put themselves forward and also the huge volume of member votes received. Both appointees are outstanding in their field and I am certain that they will bring added impetus to the work we are doing to do to promote and retain good practice. I am looking forward to working closely with Alan and Scott, as we continue to grow the reputation and potential of our market.
“The voting was very close, and I would like to express thanks to all members who stood for election and, of course, to those members who voted.”
Alan Margolis, Director of Bridging at Masthaven Bank, says: “I am delighted to have the opportunity to serve the ASTL and its members again. I have been involved with the ASTL since its inception and look forward to working with Vic, Scott and the other executive members to safeguard and promote the interests of the short term sector.”
Scott Marshall, Managing Director at Roma Finance, says: “I’m honoured to have been voted on to the Executive Committee of the ASTL and relish the opportunity to contribute to the future direction of the bridging market. In such a buoyant sector the ASTL has an important role to play in working with lenders to build on the transparency and professionalism achieved in recent years.”
PRESS RELEASE – WEDNESDAY 11TH MARCH 2020
Lightfoots Solicitors joins The Association of Short Term Lenders
Lightfoots Solicitors has become the latest professional organisation to become an associate member of the Association of Short Term Lenders (ASTL).
Established more than 150 years ago, Lightfoots Solicitors provides a full range of traditional legal services from its offices in Thame to private clients and businesses throughout Oxfordshire, Berkshire & Buckinghamshire.
Penelope Chelmick, Head of Lender Client Relations at Lightfoots Solicitors, says: “The short term lending division continues to thrive and is now a key part of any diverse business wanting to have success in the lending and or property sectors. We have worked hard to cement our name as a firm associated with this work and a crucial part of maintaining that status is to align ourselves with associations such as the ASTL who are there to not only help shape and guide the industry but also provide the experience and support to members such as ourselves.”
Vic Jannels, CEO of the ASTL, says: “For an organisation like the ASTL, associate members enable us to achieve the diversity we need to stay at the forefront of promoting and protecting the interests of our members and the bridging sector, and we are very pleased to welcome Lightfoots Solicitors on board.”
Press Release: Thursday 5th March 2020