ASTL members wrote £2.7bn worth of bridging loans in the year ended 31st March 2016. This is a 16% increase compared with the year ended 31st March 2015.
The news also follows reports that the value of applications is up 20% year-on-year, but the value of the loan book is down 4%.
This is said to be as a result of loans being paid off at a higher rate than they were previously.
The value of loans written in Q1 this year also reduced by 9% over December’s quarter, which the ASTL said was due to the first quarter of the year being quieter than the year end and was “expected to bounce back” in Q2.
Benson Hersch, Chief Executive of the ASTL, remained optimistic about the figures: “Bridging finance continues to power forward and is now an established niche product.”
However, he acknowledges that members are less positive about the economy as a whole.
“Figures on the economy released last week do cause me to sound a note of caution and there remains some concern due to the uncertainty about the results of the June referendum, which may yet have an unknown effect on the market.”
“As applications begin to pick up over the next quarter, despite some negative factors, the need for bridging finance is likely to continue to grow and our members are well placed to take advantage of opportunities.”
The ASTL is a trade body formed in 2008 to represent lenders who offer bridging or short-term mortgages or loans. It currently has 35 full members and 26 associate members.
Leave a comment