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Bridging lending soars 25% to pass £3.5bn

  • 26/02/2018
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Bridging lending soars 25% to pass £3.5bn
Bridging lending passed £3.5bn last year according to the Association of Short Term Lenders (ASTL), as Q4 saw its members conducting more than £1bn of business in a quarter for the first time.

The total was up 24.6% on last year’s with the final three months of 2017 up 31.7% compared to the same period in 2016.

The ASTL said that the size of members’ loan books was also healthy, rising by 12.9%, to £3.7bn at the end of the year.

Encouragingly the number of loans in default were also down by 4.7% compared to the end of 2016.

The fourth quarter did see the pace of application increases continue to slow, but overall in 2017 bridging loan applications were up 42.6% for a total of £18.93bn.

However, the ASTL acknowledged that applications tended to be unreliable indicators and were dependent on how many lenders offered the same deals.

ASTL chief executive officer Benson Hersch said: “Our figures highlight that, despite ongoing concerns relating to Brexit and the property sector, the bridging finance industry remains in good shape and is ready and willing to meet the challenges that 2018 may bring.

“The bridging sector continues to provide a vital role in the economy by offering customers access to the capital they need in a responsible and sustainable way. It continues to be an important part of the alternative finance market,” he added.

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