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Value of bridging loans jump 63%

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  • 13/02/2015
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Value of bridging loans jump 63%
The value of applications for bridging loans surged in 2014 to a record level, rising 63% year-on-year to a total of £2.27bn.

According to the latest quarterly figures from the Association of Short Term Lenders (ASTL), the value of the overall loan book jumped by 54% compared to December 2013, with a 20% increase in Q4 over Q3.

ASTL pointed out that the value of applications tended to be volatile on a quarter-by-quarter basis. However, with loans rising by 12% in Q3 compared to Q2, it said the outlook for the sector in 2015 was ‘positive’.

Benson Hersch (pictured), chief executive of the ASTL, said political uncertainty surrounding the general election could cause a “bumpier ride” over the coming months.

“Bridging has established itself as an increasingly valuable source of finance, so intermediaries seem more aware of its benefits and appear to be happier to recommend bridging loans than in the past.

“Our members are at the forefront of responsible bridging lending and provide a responsible and reliable service for both SMEs and homeowners.”

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