The value of bridging finance loans written by ASTL members in the year ended June 2015 increased by 32% to £2.4bn compared to the year ended June 2014, increasing by more than half a billion pounds year-on-year. The value of the overall loan book of ASTL members rose by 39% compared to June 2014 and 8% compared to March 2015.
Demand for bridging finance continued to rise as the value of applications increased by 34% in Q2, year-on-year.
Benson Hersch, chief executive of the ASTL, said: “The figures highlight how bridging lending has established itself as an increasingly valued source of finance and, as a result, has risen in prominence considerably outstripping [growth in] the mainstream market.
“The post-election outlook for this year is a positive one. Nearly all our members predict that volumes will continue to increase over the next six months and expect to deal with any issues relating to the implementation of the Mortgage Credit Directive.”
The ASTL is a trade body formed in 2008 to represent lenders which offer bridging or short-term mortgages or loans. It currently has 31 full members and 22 associate members.
