In 2021 we saw the value of bridging loan books top £5bn for the first time and a growing number of brokers are recognising how they can use bridging finance for their clients. Competition amongst lenders is driving rates down and this e pricing is making bridging more accessible to a wider group of customers.
Just when we thought the future was looking more certain, the Omicron variant has served as a timely reminder that making predictions is fraught with pitfalls. However, there are some trends that show a clear path of travel, whatever the external environment throws at them. Here are five trends that we think it’s safe to expect in the short-term lending market in 2022.
Debenhams Ottaway has become the latest professional organisation to join the Association of Short Term Lenders (ASTL) as an associate member.
Debenhams Ottaway is a multi-service law firm that works with businesses, individuals and families in Hertfordshire, London and across the UK, helping them make the most of new possibilities or deal with unexpected challenges at home or in business. It offers services that include banking finance and loan agreements, litigation and dispute resolution, and corporate insolvency and restructuring.
Buzz Capital has become the latest lender to join the Association of Short Term Lenders (ASTL).
Brighton-based, Buzz Capital provides simple, straightforward bridging finance up to 75% LTV for a range of purposes, including purchase, refinance and refurbishment of residential or semi-commercial property; commercial to residential conversions and development exits, as well as bespoke financial solutions for individuals with complex circumstances.
The latest ASTL data shows the bridging market continuing to deliver strong, sustainable growth in Q3 2021, with applications and loan books both higher than in Q2, while the value of loans in default has fallen for the third consecutive quarter.
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 £7.72bn in the quarter ending September 2021, an increase of 4.9% on the previous quarter.
It finally seems that we are emerging from the pandemic, and we’re doing so with the bridging market in good shape. The latest lending data from the ASTL shows an almost universally positive set of results for bridging lending in Q2 2021, with completions increasing, applications remaining strong and defaults falling.
A Shade Greener (ASG) Finance has become the latest lender to join the Association of Short Term Lenders (ASTL).
Established in 2013 to provide commercial finance to UK businesses using funds generated from the associated renewable energy company, A Shade Greener Ltd, ASG Finance provides a suite of tailored financial solutions including bridging finance, development finance, medium term lending and asset backed working capital. It also offers business recovery and restructuring and profit share development finance. Loan sizes are available from £500k to £7m.
The latest lending data from the ASTL presents plenty of reasons to be positive about the bridging market. The figures, which are compiled by independent auditors using data provided by members of the Association of Short-Term Lenders, show bridging completions were £1.1bn in Q2 2021, an increase of 23.2% on Q1. Bridging loan books reflect this increase in completions and now stand at over £4.7bn.
Earlier this year, when the enforcement moratorium was lifted, the government provided a safety net for struggling borrowers with the introduction of a new piece of legislation – The Debt Respite Scheme (Breathing Space).
How often do you read about bridging finance in the personal finance press, or hear people talk about short-term mortgage lending on the television or radio? It doesn’t happen frequently, and when it does it rarely provides a fair reflection of the sector.