Bridging almost doubles in one year

Bridging almost doubles in one year




Bridging lending approached 100 percent growth compared to the same period in the previous fiscal year, according to The Association of Short Term Lenders' latest figures.

 Bridging lending approached 100 percent growth compared to the same period in the previous fiscal year, according to The Association of Short Term Lenders’ latest figures.


ASTL’s latest quarterly figures showed that the value of new loans written has nearly doubled for the quarter ending on 30th June – illustrating a staggering rise of 92 percent when compared to the same quarter last year.

The figures, which are based on the performance of ASTL members, including most of the key lenders in the bridging market, reflected an increase of 50.4 percent in value of the overall loan book this quarter, compared to the same quarter last year.

Compared to quarter one, the figures are less dramatic- but still significant. Loan values increased by 14.6 percent from Q1 to Q2, despite a decrease of 15.4 percent in applications for bridging loans over the same period.
However, this is may not be worrysome considering the dramatic rise in other figures: 83 per cent growth for the first quarter of this year from Q4 of 2013.

 
Commenting on the rising figures, 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 16th September.”
The ASTL annual conference is taking place at Painters’ Hall, Central London, from 10.30am to 3.30pm on Tuesday 16th September.
 
To register please contact Kay Woolley at: [email protected] or via the website.

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