Bridging lending almost doubles

The figures, which are based on the performance of ASTL members, reflected an increase of 50.4% in value of the overall loan book this quarter, compared to the same quarter last year.

Compared to Q1, the figures are less dramatic- but still significant. Loan values increased by 14.6% from Q1 to Q2, despite a decrease of 15.4% in applications for bridging loans over the same period. However, considering the dramatic rise in other figures: 83% growth for the first quarter of this year from Q4 of 2013, this isn't too concerning.

Commenting on the rising figures, Benson Hersch, Chief Executive of the ASTL, said:

“The dramatic rise in applications for bridging loans seen last quarter has not been repeated. Clearly, previous figures were skewed by one-off factors.

This should not obscure the fact that the overall trend is strongly upwards, with our members writing £1.8 billion worth of loans in the past year.

“Bridging is now established as a reliable and useful form of short-term finance, and our members provide a responsible and reliable service. The opportunities and challenges of bridging finance make this sector an exciting one."