Bridging loans surge by 49%

The value of bridging loans written in the year ended March 2015 have grown by almost a half on last year’s results, according to ASTL's quarterly figures.

The Association of Short Term Lenders (ASTL) has revealed in its quarterly figures that £2.35 billion worth of loans were written by members in the year ended March 2015, where the overall loan book expanded by 43 per cent compared to the same period in 2014.

While bridging loan applications are still increasing with a 29 per cent year-on-year rise, the figures showed that the pace has slowed from 63 per cent growth.

A 19 per cent drop from Q4 2015 to the first quarter of this year was also highlighted, albeit “not considered to be a concern”.

“Members of the ASTL and the bridging industry as a whole, did well in 2014 and the outlook for 2015 remains positive, especially now that political uncertainty has been removed for the moment,” Benson Hersch, Chief Executive of the ASTL explained.  

“Our members are optimistic about the future and have a generally positive outlook.  Bridging is here to stay and continues to outperform the mortgage industry as a whole.

Benson added: “Our members are principal lenders with principles, at the cutting edge of the industry and provide a valuable service to property owners and investors.”
    
Figures were taken from ASTL member responses, which included a range of key lenders in the bridging market.