Since our last bridging loan market update here, loan books have continued to grow despite uncertainty in the property market.

According to a report from The Association of Short Term Lenders (ASTL), members indicated that their bridging mortgage loan books increased by more than 5% in the last quarter to an all-time high of £7.1bn.

Q3 Bridging Loan Trends 2022
	Qtr 30 Jun23 Vs. 31 Mar23	Qtr 30 Jun23 Vs. 30 Jun22	YE 30 Jun23 Vs. 30 Jun22
Loans Written (£)	(5.3)%	+9.9	+20.0%
Loan Book (£)*	+5.1%*	+18.0%*	+18.0%
Applications (£)	+(5.9)%	+22.3%	+3.5%

*As at the end of the period **This research was based on ASTL members and only represents part of the market.

The Association of Short Term Lenders (ASTL)

The ASTL was created to protect and promote its members and ensure they abide by a set code of conduct for their product offering of short-term bridging and secured loans. The association will also collect and share industry insights and statistics, work with regulatory authorities, and comment on market trends.

ASTL CEO, Vic Jannels said:

“The short-term lending sector continued to demonstrate its versatility and resilience in the second quarter of this year, during which period members combined loan books have exceeded £7bn for the first time.
“Whilst applications and completions were slightly down on the previous quarter, they were both higher than the same period last year. Given that we are still faced with the vagaries of an uncertain economy and faltering property market, this represents another very strong performance.
“We cannot ignore the wider economic environment, which is putting greater pressure on exit strategies, and so it’s important that lenders continue to take a robust approach to underwriting to help ensure the market continues to grow in a cautious and sustainable way. In doing this, the market will be well placed to help even more customers to finance transitional periods in the future.” (ASTL 2023)

Bridging Loan Market Changes

This research is also in line with what Onyx has seen recently with inbound enquiries. We have seen increases month on month of new bridging enquiries – of which they were 75% up in August 2023.

Onyx CEO, Dan Richards said: “With a somewhat volatile market at present, it is positive to see that the bridging market is still thriving. Long may it continue”.

Onyx is dedicated to keeping on top of all trends and concerns and reacting accordingly. We are pleased to continue to offer the same rates of interest despite the recent rises in the England Bank Rate, offering competitive LTV’s of up to 75%.

Onyx has extensive knowledge in offering bridging loans to suit all purposes. We are experts in the field of providing financial solutions for property professionals in a range of circumstances. Speak to us today and get your project up and running before you know it: info@onyxmoney.co.uk.