Gross bridging lending grew by 9% in the second quarter of 2013 to £492m and was 39% higher than the same time last year.
Based on the average growth rate of the last 12 months, West One calculated gross mortgage lending for the year could total £2.1bn. In the year to June 2013, gross bridging lending was £1.76bn.
West One Loans director Duncan Kreeger said the figures beat expectations: “Rather than maintaining a dusty balance sheet of long-term mortgages, the bridging industry is financing real, practical and dynamic projects. Where mainstream lenders are still too afraid to tread, and find themselves held back by capital adequacy rules, this industry is giving developers, landlords and small businesses the loans they need.
“In 2012, bridging provided over £1.5bn of these loans to people who needed them. It’s encouraging that the industry is on track for an even more important milestone this year.”
West One compiles the index using the firm and its partners’ data, statistics from the Association of Short Term Lenders and other market information.
The size of the average bridging loan increased from £397,000 in Q1 to £405,000 in Q2. The average interest rate over the three month period was 1.18%, compared to 1.24% in the first three months of the year.
The news comes as specialist lender Brightstar Financial announced it had passed £100m in completions in the first eight months of 2013.
Brightstar chief executive Rob Jupp, specialist in bridging and commercial loans as well as more mainstream offerings, attributed the volumes to good relationships with lenders and intermediaries.
