Bridging lending almost doubles in a year
By Bridging Loan Directory -
The Association of Short Term Lenders’ (ASTL) today releases its latest quarterly figures on the size of the bridging market. The figures, for the quarter ending on 30th June, reveal a near doubling in the value of new loans written which have risen by 92% compared to the same quarter last year.
The value of the overall loan book also increased by 50.4% this quarter compared to the same quarter last year, while the value of applications increased by 52% compared to the same quarter last year.
Compared to quarter one of this year, ending 31st March, the figures are less dramatic but still significant. The value of loans written increased by 14.6% from Q1 to Q2, but surprisingly there was a decrease of 15.4% in applications for bridging loans over the same period. This is not regarded as significant however as the figures for the first quarter of this year were spectacularly high having increased by 83% over Q4 of 2013.
These figures are based on the performance of ASTL members, which include most of the key lenders in the bridging market.
Benson Hersch, chief executive of the ASTL said:
“The dramatic rise in applications for bridging loans seen last quarter has not been repeated. Clearly, previous figures were skewed by one-off factors. This should not obscure the fact that the overall trend is strongly upwards, with our members writing £1.8 billion worth of loans in the past year.
“Bridging is now established as a reliable and useful form of short-term finance, and our members provide a responsible and reliable service. The opportunities and challenges of bridging finance make this sector an exciting one, and interested parties are urged to attend our conference on 16 September.”