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Year-on-year bridging applications up 107%

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  • 03/06/2014
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Year-on-year bridging applications up 107%
The number of bridging applications rose by 107% to a value of £2.3bn in Q1 2014 compared to the same quarter last year, figures from the Association of Short Term Lenders has revealed.

Over the same period the value of the overall loan book increased by 43.8% to £1.6bn this quarter compared to the same period last year.

Benson Hersch, chief executive of the ASTL, said: “We have all seen for some time that consumer confidence is up and the level of loans is on the rise but this increase in applications for bridging loans is more dramatic than most people expected.”

Hersch said the rise in applications could be a ‘churn’ in loans, where one bridging lender refinances another’s loan which he said should lead to a similarly large rise in completion next quarter.

He added: “Even if a percentage of the rise in applications is due to churn the rise demonstrates a growing awareness of and demand for bridging finance.”

David Kinane, partner of Paxton Private Finance, said the relaxation of the change of use planning rules have driven up applications from developers for bridging loans to fund conversions of office space to residential dwellings.

“Pub conversions are particularly popular with developers,” added Kinane.

“Flats with a village theme and character features like exposed beams, often found in pubs, sell well.”

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