astl reveals £1.1bn bridging loan book

The astl has revealed the bridging and short term lending figures completed by its members for the quarter ending 31 March 2013.

In the quarter, applications were received for £1.113 billion, while astl members lent £288 million worth of loans up from £283 million last quarter. The loan book at the end of period was worth £1.102 billion, an increase of 4.6 per cent.

Applications were down, but loans written were 1.4 per cent up on the previous quarter; there was also an increase of over 4.6 per cent in total loan books. As applications are often received by several lenders, the decrease in value in total applications is not necessarily relevant as it indicates that more people may have applied just to one lender for their loan, it is therefore the amount lent that is significant.

Benson Hersch, Chief Executive of the astl, says: “The figures reflect the steady increase I expected revealing the ongoing need for bridging finance. This has not decreased, despite pressure by government and promises by mainstream banks to lend more, as a result, short term loans are filling the gaps in many instances.

“After a significant rise at the end of last year, the current quarter has seen steady demand and I expect the next quarter’s figures, to continue to show a slow but steady improvement.”

astl short term lending figures, representing the lending of all of its members, are produced and published quarterly.

The astl is a trade body formed in 2008 to represent lenders who offer bridging or short term mortgages or loans. It currently has 24 full members and 12 associate members.