Bridging loan completions fell by 6.1% in the third quarter of the year to £1bn, although this figure pushed the combined value of company loan books to a record high.

The total value of firm loan books was £5.07bn in the quarter ending in September, according to the Association of Short-Term Lenders. This is an increase of 6.8% on the previous three months and a jump of 11.1% on the same quarter last year.

It added that bridging applications also hit a record £7.72bn in the quarter, an increase of 4.9% on the previous three months.

Average loan-to-value ratios continued to hold at 59.8% in the second quarter, while the value of loans in default fell for the third consecutive quarter, a decrease of 4.1% over the first three months of the year and a fall of 3.6% on the same period a year ago.

ASTL chief executive Vic Jannels says: “The third quarter of 2021 saw lending figures continue to paint a picture of a market that is enjoying strong growth while maintaining a robust approach to risk, with applications increasing and loan books topping £5bn for the first time, at the same time as defaults falling for the third consecutive quarter and LTVs remaining stable.

“From experience, we know that more brokers are engaging with the bridging market and analysis of our data shows growth across different elements of short term lending, including development finance and second charge bridging.

“It’s clear that bridging is becoming more established as an invaluable piece of a broker’s toolbox for a range of purposes.”