The Association of Short Term Lenders (ASTL) has reported a fall in the value of bridging loans written during the third quarter of 2016.
However, the total amount written during the year has continued to rise.
The value of loans written in quarter three ending 30th September fell by 4% compared to Q3 last year and is down by 17.4% compared to the quarter ending 30 June.
The value of loans has alternatively risen and then dropped for the last four quarters.
And yet the value of the total value of loans written by all ASTL members for the year ended 30 September, is up significantly, by 15% compared to the year ending September 2015.
The value of applications also declined quarter on quarter.
Benson Hersch (pictured), chief executive of the ASTL, said: “This was the first full quarter after the referendum. Brexit blues, increased stamp duties and impending tax changes all seem to have had an effect. My doubts regarding the record level of applications in the June quarter being reflected in completions in the September quarter proved correct and I predict the same for the forthcoming quarter.
“Bridging figures have been on something of a rollercoaster ride over the past year, having alternatively risen and then dropped, however the size of the total loan book is still well up on the previous year.
“Anecdotal feedback from members in respect of Q4 remains positive, but whilst many are positive about their firm’s performance, the market is definitely becoming showing signs of becoming more difficult. I therefore think that we will end the year well up on last year’s total of £2.4 billion loans written, but we are unlikely to make the £3 billion that many were predicting last year.”
