The Association of Short Term Lenders’ (ASTL) latest quarterly figures have revealed that the value of loans written in 2014 increased by 62.5% compared to 2013, maintaining the upward momentum which began in the second quarter of 2014.
£2.27 billion worth of loans were written by ASTL members in 2014, while the value of the overall loan book increased by 54% compared to December 2013 and by 6% compared to September 2014.
The value of applications for bridging loans increased by 63% year-on-year, with a 20% increase in Q4 over Q3. The ASTL said the value of applications does tend to be volatile on a quarter by quarter basis but with a 12% increase already in Q3 over Q2, the continuation of the positive trend augurs well for the bridging sector.
Benson Hersch (pictured), chief executive of the ASTL, said: “Members of the ASTL and the bridging industry as a whole, did well in 2014 and the outlook for 2015 is positive, although political uncertainty may cause a bumpier ride. Bridging has established itself as an increasingly valuable source of finance, so intermediaries seem more aware of its benefits and appear to be happier to recommend bridging loans than in the past.
“Our members are at the forefront of responsible bridging lending and provide a responsible and reliable service for both SMEs and homeowners.”