Transition requests hit a record high in Q3: ASTL
“Third quarter 2021 loan numbers continue to paint a picture of a market experiencing strong growth while maintaining a robust approach to risk.”
Figures, provided by ASTL members, show transition requests hit a record high of Â£ 7.72 billion in the third quarter, up 4.9% from the previous quarter.
While the value of completions is down 6.1% from the second quarter, completions still stood at Â£ 1.0bn in the quarter, meaning that the value of the loan pounds s ‘now stands at over Â£ 5 billion for the first time.
Data shows the value of loan portfolios was Â£ 5.07 billion at the end of September, an increase of 6.8% from the previous quarter and a jump of 11.1% from the same quarter from last year.
According to the data, average LTVs continued to hold steady at 59.8% and the value of defaulted loans declined for the third quarter in a row, showing a decline of 4.1% from the first quarter and a decrease of 3 , 6% compared to the same quarter last year.
Vic Jannels, CEO of ASTL, said: “The third quarter 2021 loan numbers continue to paint a picture of a market that is experiencing strong growth while maintaining a robust approach to risk, with increasing demands and loan portfolios exceeding Â£ 5 billion for the first time, at the same time as payment defaults decreased for the third consecutive quarter and LTVs remained stable.
âFrom our experience, we know that more and more brokers are entering the transition market and analysis of our data shows growth in different elements of short-term lending, including development finance. and the second transition charge. It is clear that bridging is increasingly established as an invaluable part of a broker’s toolbox for a variety of purposes. We would always recommend that ASTL lenders continue to represent a benchmark in quality and customer focus for these brokers. “