Bridging applications grow 11% in 2020

Essex Home Finance
Bridging completions were £2.88bn in 2020, down from £3.99bn in 2019, but applications grew by more than 11% on the previous year.
The latest Finance and Property News2

Bridging completions were £2.88bn in 2020, down from £3.99bn in 2019, but applications grew by more than 11% on the previous year, according to the latest figures from the Association of Short Term Lenders (ASTL).

The data shows that completions in 2020 fell by 27.9% on 2019 and that bridging loan books dropped to £4.48bn, a decrease of 2.5% on the previous year. The value of applications in 2020 increased to £25.82bn, up from £23.19bn in 2019.

The data shows that the surge in applications in Q3 last year went on to drive a 34.9% increase in completions in Q4 – there were £918m of completions during the quarter. Applications in Q4 2020 were at £6.69bn, down by 12.7% on Q3, but they were still up by 22.9% on the same quarter in 2019. Average LTVs fell slightly in Q4 and have now dropped to below 59%.

The value of loans in default in Q4 2020 increased by 13.9% on Q3 and was 23.8% higher than the same period the previous year as borrowers continued to feel the financial impact of the pandemic.

Vic Jannels, CEO of the ASTL, said: “The Q4 lending figures give us an opportunity to review the performance of 2020 as a whole. Completions were down on the previous year, which is to be expected given the periods of national lockdown. However, applications were actually higher than in 2019, which reflects the enormous potential the bridging market has to provide customers with a funding solution through these difficult times.

“We must, however, remain cautious. The effects of economic slowdown are starting to be reflected by the value of loans in default and, while the roll out of the vaccine for Covid-19 continues at pace, a return to normal levels of economic activity seems unlikely before the summer, so these trends may persist for several months.”

Original Article from Financial Reporter 15/02/2021

Get In touch

Leave this field blank
Mobile / Home Number
Please choose the closest match to your Mortgage Needs
  • Choose
  • First Time Buyer
  • Help To Buy
  • Homemover
  • Remortgage
  • Buy to Let
  • Equity Release
  • Insurance
  • Home Utilities
  • Nothing found
Essex Home Finance

(01245) 398466

Call Anytime

Address : 8 Kingsdale Business Centre, Regina Road, Chelsmford, Essex, CM1 1PE

Essex Home Finance Ltd is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.

Registered address: 1 High Street, Chelmsford, Essex, CM1 1BE.

Registered in England & Wales under number 10607263.

Your home may be repossessed if you do not keep up repayments on your mortgage.

We do not charge for Residential First Time Buyers, Residential Home Movers, Residential Remortgage, and all Product Transfers (Residential or Buy to Let).

There will be a fee for all Buy to Let Purchase and Buy to Let Remortgage cases. Typically our fee will be £149, payable on Offer. We will agree any fees with you before we proceed with your case.

There will be a fee for all Equity Release Mortgage cases. Typically our fee will be £695, payable on Offer. We will agree any fees with you before we proceed with your case.

We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. 

Our advice is covered under the Financial Ombudsman Service.  You may be able to submit a claim through the  EU Online Dispute Resolution Platform If you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service.