< p>Regulated bridging saw a significant rise in the number of applications as a result of election uncertainty, according to MTF’s latest Bridging Trends data…

Q2 saw a significant uplift in bridging loan applications for mortgage delays, increasing from 8% in Q1 to 33% in Q2, which reflects the uncertainty from the mortgage market in the run-up to the election.

Contributors to MTF’s Bridging Trends also reported an increase in lending volumes in the second quarter, which climbed to just under £100m compared to £80.47m in the previous quarter.

Key points from Bridging Trends in the Q2 were:

Refurbishment was the second best performing area of the industry
Bridging loans for businesses fell to 16%, from 24% in the first quarter
Total contributor lending reached £99.11m, an increase of 23%
Average term remained at 11 months
Average monthly interest rate dropped to 0.91%
Average LTV was 45.9%
Mortgage delays were most popular use for bridging loans
47% of bridging loans were regulated, an increase from 32% on the previous quarter
 
“The latest data is interesting and suggests that the short term lending market is regularly shifting,” explained Joshua Elash, Director at bridging loan lender MTF.
 
“Bridging Trends, which offers a general snapshot of the market, is still however at an embryonic stage and we will need to collate more data over several quarters before we can confidently look to identify any emerging or consistent trends."

Kit Thompson, Director of Bridging at Brightstar Financial, said he was really pleased to see lending up by almost £20m as it showed the sector was still in “very rude health”.

“Those lenders, who can deliver quickly and with minimal fuss, are those best fit to take market-share.

“It's not all about rate,” said Kit.

“The key-driving factor has historically been speed and 39 days to complete a bridging loan is not a stat I am particularly proud of.

“As an industry, we can and should do better.”

Chris Borwick of SPF Short Term Finance said it came as no surprise that the specialist lending continued to grow as competition between lenders was hot.

“Many of the lending scenarios we see every day are relatively straightforward, are for valid reasons and have viable exit strategies,” said Chris.  

“All the while the high street lenders remain uninterested in these transactions the further the specialist sector will cement its reputation as a viable alternative for the consumer.”

The rise in regulated loan translated into lower monthly interest rates and LTVs but longer turnaround times something which surprised Chris Whitney, Head of Specialist Finance at Enness Private Clients.

“I thought the industry as a whole would have been much higher,” said Chris.

“Pricing is still under downward pressure from strong competition, but how much lower can this go?

“The average completion time also killing the myth once touted that ‘If it’s not done in two weeks it’s just not bridging!’”