The Association of Short Term Lenders’ (ASTL) latest quarterly figures on the size of the bridging market has indicated that during the third quarter of 2014, the value of the overall loan book increased by 49.8% compared to the same quarter in 2013 and by 15.3% compared to Q2 this year.
Loans written by ASTL members in the year ended September 2014 have now exceeded £2 billion.
The number of loans written increased by 18.2% in the quarter ending September 2014 compared to Q2 (ending in June 2014) and by 7% for the year ending September 2014, compared to the year ended September 2013.
There has been an 11.6% increase in the value of applications for bridging loans in Q3 2014 compared to Q2 2014. This reverses the trend in the previous quarter where there was a 19% decrease, but is still less than the figures for Q1 2014 where the value of applications increased by 83% quarter on quarter.
The ASTL explained that value of applications does tend to be volatile on a quarter by quarter basis but the long-term trend continues to be positive.
Benson Hersch (pictured), chief executive of the ASTL, said: “This was yet another bumper quarter for our members, who have written £1.98 billion worth of loans in the past year.
“Bridging continues to play an important role in the alternative finance market, and our members provide a responsible and reliable service for both SMEs and homeowners. Members are positive about the prospects for the current quarter and the year ahead.”