Statistics have shown that number of short term loans written this quarter have risen by 35.4 per cent compared to the first quarter in 2013.
Also, there has been an 83 per cent increase in the number of applications in the first quarter of 2014 compared to Q4 of 2014.
On the figures, Benson Hersch, Chief Executive of the ASTL said: “We have all seen for some time that consumer confidence is up and the level of loans is on the rise but this increase in applications for bridging loans is more dramatic than most people expected. There are several factors that could be the cause of such a significant rise, it could be a churn in loans, it could be the same people applying to a number of lenders or it could, of course, be a genuine uplift in interest in bridging loans, in which case I would expect to see a similarly large rise in completions next quarter.
“Even if a percentage of the rise in applications is due to churn, the rise demonstrates a growing awareness of and demand for bridging finance. The ASTL has done much to stress responsible lending and improve the image of the bridging industry. Bridging loans are used for an increasingly wide array of uses and I expect this upward trend to continue for the rest of this year at least.”
A 107 per cent year on year increase in applications was also seen by the statistics.
Comparing the first quarter to 2013’s last quarter, the overall loan book shared by the association’s members had increased by 43.8 per cent.
These figures are taken from the responses from astl members, which include most of the key lenders in the bridging market.
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