CCR Magazine

You are here  :Home arrow News arrow Bridging applications increase by 61% to £3.5bn
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Bridging applications increase by 61% to £3.5bn PDF Print E-mail
Thursday, 11 August 2016
Demand for bridging loans in the quarter ended 30 June 2016 defied expectation, with the value of applications for bridging loans increasing by a remarkable 61.5% quarter-on-quarter.  The quarterly data survey was completed by members of the Association of Short Term Lenders (ASTL) which represents 36 bridging and short term lenders.

The value of applications in the June quarter, totalled £3.5bn which even eclipsed the usually frenetic December quarter. This shows that, despite what is happening in the mainstream market, there was little or no slowdown in the bridging and short term lending market in the pre-vote period. This should translate into healthy completions in the post-referendum period which will be revealed in next quarter’s statistics.

The value of loans written increased by 6% quarter-on-quarter, while the total value of members’ loan books increased by 39% over Q1 this year.

ASTL members wrote £2.85bn of bridging loans in the year ended 30 June 2016. This is an increase of 17% compared to the year ended 30 June 2015. Over the year there was an increase in the value of applications by a staggering 23%, although some of this can be ascribed to more “shopping around” by intermediaries.

Benson Hersch, chief executive of the ASTL says, “Bridging finance shrugged off pre-referendum doubts with a brilliant performance in Q2 2016. Members are cautiously positive about their firms’ business prospects, but very concerned about the economy as a whole. There is a strange mixture of positives and negatives in the press, with negatives by and large predominating. The Bank of England’s actions last week show that they feel that the economy requires stimulus, although some commentators are sceptical about the effects of these actions.”

“In my opinion the need for bridging finance is likely to continue to grow, especially if other finance providers tighten criteria.” These figures are taken from the responses from the ASTL’s members, which include most of the key lenders in the bridging market.
 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197