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Market updates
Bridging numbers fall in Q1 2022
Data from the Association of Short Term Lenders (ASTL) shows that bridging applications and completions in the first quarter of 2022 fell back from the highs recorded in the last quarter of 2021, but remained strong compared to the long-term average.
The figures, compiled by auditors from data provided by members of the ASTL, show that bridging completions totalled £1.04 billion in the quarter ending March 2022, a fall of 15.8 per cent on the previous quarter, when they reached £1.24 billion.
ASTL, however, said they remain higher than in the same quarter last year, when completions were just over £900 million, and completions have now been at more than £1 billion for four consecutive quarters for the first time since records began.
Bridging applications dropped off more significantly to £6.34 billion in Q1 2022, representing a drop of just over 50 per cent on the previous quarter.
The size of loan books also fell, standing at £4.48 billion at the end of March, down from £5.08 billion at the end of December.
The value of loans in default fell for the fifth consecutive quarter, decreasing by 12.5 per cent compared to December 2021, and average LTVs have also fallen. The average LTV on a bridging loan was 58.7 per cent, compared to 61.2 per cent in the December 2021 quarter.
Vic Jannels, ASTL chief executive, said that while the latest data showed a reduction across most areas in the first quarter of 2022, the numbers were set against record results at the end of last year, and the volume of lending continues to be strong.
“Given the current context of global uncertainty and increased living costs, it’s perhaps reassuring that record growth has been curtailed and the market is continuing to grow at a steadier pace,” he said.
Jannels added, “This points to high standards of lead qualification and underwriting across our members, who are continuing to provide the bridging finance that customers need, in a way that is robust and sustainable. Average LTVs have fallen, and the fact that the value of loans in default has now fallen for five consecutive quarters shows that lending continues to be responsible and customer-focused.” B I
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Spring Finance brings specialist bridging proposition to whole of market
Spring Finance has launched its specialist bridging proposition on the wider market after a successful three-month pilot.
The specialist lender said it will be offering a comprehensive range of loans to support intermediaries and customers with the aim of building a trusted and respected funder that makes quick, robust decisions and provides a flexible, supportive, and efficient service.
The product range includes FCA regulated, unregulated, first and second charge, complex credit, heavy refurbishment (with drawdowns), and light development loans. Loan sizes are from £50,000 to £2m.
Spring comes to the market with over 60 years of combined experience. It also recently announced the appointment of Gavin Diamond, joining the lender as chief executive in July 2022.
Spring has been running a pilot scheme with a select group of intermediaries since March 29, taking feedback on the products, processes, and service.
“Feedback from our pilot reaffirms that intermediaries want a trusted partner to support their business, and I am delighted we are now bringing our offering to the wider market,” said Jim Baker, sales director of bridging at Spring Finance.
“I’m delighted with the feedback from our pilot and am excited that we are now launching to the wider market,” said Claire Newman, head of bridging at Spring Finance.
Meanwhile, Spring also announced a refresh of both its website and logo, with the new branding aimed at reinforcing the lender’s evolution while still retaining its heritage.
“Spring Finance has seen a clear gap in the bridging market for a lender that has the experience and expertise to make transparent and robust lending decisions. This, combined with Spring’s common-sense underwriting and efficient processing, even on complex Spring Finance senior bridging team
cases, means financial intermediaries and their customers can rely on us to deliver the service we have promised,” Baker said.
“One of the core elements of our proposition at Spring is the personal approach to each loan and the commitment to provide a high level of service. The whole team takes real pride in a job well done, and this will continue through this launch and as we look to enhance our product range over the coming months,” Newman added.
