In the ever-evolving landscape of the real estate market, the bridging finance sector has once again demonstrated its adaptability and resilience. ASTL recently released data revealing that bridging loan books surged by 5% to a historic £7.1 billion in the second quarter of 2023.
While bridging completions saw a slight dip of 5.3% compared to the previous quarter, these numbers remained higher than the same period last year. Applications, too, experienced a 5.9% decline, reflecting the ongoing uncertainty in the broader economy and property market.
One of the notable trends emerging from the data is the decrease in average LTVs to 57.8% in Q2, a drop from the 59.3% recorded in the previous quarter. This shift signifies a cautious approach by lenders, recognising the need to mitigate risks while supporting borrowers during transitional periods.
The broader economic environment adds pressure to exit strategies, and it becomes crucial for lenders to uphold rigorous underwriting standards. This ensures that the bridging mortgage market grows in a stable and prudent manner. As the economy navigates uncertainties, the sector's adaptability in managing risks and supporting customers during transitions remains pivotal.
The record-breaking £7.1 billion loan books reflect the sector's potential to help customers navigate uncertain times, underscoring its role as a stabilising force in the property market. With each passing challenge, our sector continues to prove its mettle, promising continued growth while prioritising the financial well-being of its clients.
Source: Bridging & Commercial