Bridging applications reach £3.5bn in Q2

Bridging applications reach £3.5bn in Q2

Applications for bridging loans increased by an impressive 61.5% in Q2 of 2016, according to data from the Association of Short Term Lenders (ASTL).

The ASTL has found that the value of applications in Q2 totalled £3.5bn, which eclipsed the December quarter. 

The figures show that despite concern in the mainstream market in the run up to Brexit, bridging saw little to no slowdown, which should translate into healthy completions in the post-referendum period.

ASTL revealed that its members wrote £2.85bn of bridging loans in the year ended 30 June 2016, a 17% increase on the same time last year. 

ASTL's latest figures
“Bridging finance shrugged off pre-referendum doubts with a brilliant performance in Q2 2016,” said Benson Hersch, chief executive of the ASTL.

“Members are cautiously positive about their firms’ business prospects, but very concerned about the economy as a whole.”

Benson added that there was a strange mixture of positives and negatives in the press with negatives by and large predominating.

“The Bank of England’s actions last week show that they feel that the economy requires stimulus, although some commentators are sceptical about the effects of these actions.”  

“In my opinion, the need for bridging finance is likely to continue to grow, especially if other finance providers tighten criteria.”

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