You are here: Home - Specialist Lending - Bridging -

Bridging ‘defies expectations’ – ASTL

by: Heather Greig-Smith
  • 21/02/2017
  • 0
Bridging ‘defies expectations’ – ASTL
Demand for bridging loans soared in the last quarter of 2016 according to the latest figures from the Association of Short Term Lenders (ASTL).

The value of bridging loans written by members increased 26% in the final quarter of the year, compared to the quarter ending September 2016. The ASTL attributed some of this to Brexit bounce back.

Across 2016, the ASTL said growth was more modest, with the value of loans written 9.4% higher than in 2015. Total lending for the year rose to £2.83bn from £2.59bn. However, the overall loan book increased by 29.7% on 2015, reaching £3.3bn.

The value of applications increased 27.5% quarter-on-quarter, compared to a fall of 5% the previous quarter and a fall of 14% in Q4 2015. The improvement translates to an increase in value of applications of 71% compared to Q4 2015.

However, while applications for the year increased 34% over 2015, the value of loans written increased by just 9.4%. The ASTL said this indicates that not all applications reach completion, and that brokers tend to submit applications to several lenders at a time.

Benson Hersch (pictured), ASTL chief executive, said: “After a dip in volumes almost across the board in Q3 last year following the referendum, the size of the increase both in the quarter and across the year has overshot even my most optimistic expectations.

“I do expect volumes to rise again in the first quarter of this year, however, I expect the percentage increase to be lower compared to Q4, as this quarter’s figures very much contrast with the Brexit blues that affected people looking for bridging loans between July and September last year.”

He added that the market is larger than the figures indicate. “While lending by ASTL members didn’t quite hit £3bn, there are a number of bridging loans that fall under the radar, made by lenders that many people do not know exist, as well as those lenders who are not members.”

There are 0 Comment(s)

You may also be interested in

Bridging

Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.

Commercial

Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions
Read previous post:
Photo of Michelle Bunter Business Development Manager Family BS
Know Your BDM: Michelle Bunter, Family Building Society

This week Mortgage Solutions is talking to Michelle Bunter, business development manager for Family Building Society.

Close