Bridging completions were recorded at £470m in Q2 2020, which is down 56% compared to figures recorded in Q4 2019, according to the latest figures from the Association of Short-Term Lenders (ASTL).

The data shows that applications increased by just over 1% in Q2 compared to Q4 2019, whilst loan books showed a small decrease but remain at £4.5bn.

Average LTVs increased slightly in the same time period, but continue to remain at sub-60%.

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Vic Jannels, chief executive of the ASTL, said: “This was an unusual data survey for a number of reasons and comparing the June 2020 quarter with December 2019 shows a variety of ups and downs.

“It is difficult to ascertain any real trends at this stage given the impact of lockdown, but at the moment the signs for new business volumes are all positive.

“One area of concern is the value of loans in default, which showed a small increase in Q2.

“It is uncertain how long the economy will be affected by COVID-19 and it is possible that the situation regarding defaults could worsen, particularly given the enforcement moratorium and delays that lenders are facing with collections activity.”

The survey found that the value of loans in default showed a small increase of 5.4% over December 2019.

The Q2 2020 figures for the ASTL Data Survey are being compared to Q4 2019 as the Q1 2020 survey was skipped due to COVID-19 and the national lockdown.