£1 billion lent in bridging loans in last quarter
The latest figures from the Association of Short Term Lenders (ASTL) showed that £1 billion was lent in new bridging loans during the last quarter of 2017. This was an increase of 21.6% on the third quarter of 2017. Over the whole of 2017, bridging lending increases by 24.6% to £3.5 billion.
There was a small decrease in the number of applications in the last quarter of 2017, but for the full year, applications were up by 42.6%. However, the number of applications can be unreliable indicators as many borrowers apply to more than one lender at a time.
The number of loans defaults was 4.7% down compared to the end of 2016.
The CEO of the ASTL Bernard Hersch said:
“Our figures highlight that, despite ongoing concerns relating to Brexit and the property sector, the bridging finance industry remains in good shape and is ready and willing to meet the challenges that 2018 may bring.”
He added that the bridging sector is a vital part of the British economy, providing businesses and individuals with access to short term finance. Bridging finance is an important part of the finance market.
The average interest rate on bridging loans is 0.83% a month, which is down from 0.85% a month in 2017. Though most bridging loans are for property purchases, there has been a large rise in applications for refurbishment work.
These bridging loan figures are based on a survey of ASTL members.