Bridging loans grow in third quarter of 2017
The number of bridging loans that lenders provided rose by 38.9% in the third quarter of 2017 compared to the same period in 2016.
Research by the Association of Short Term Lenders (ASTL) showed that in the third quarter of 2017, the total value of bridging lending increased by 8.3% compared to the second quarter of 2017. The total value of bridging loans was £3.5bn.
Bridging loan applications rose by 45.5% in the third quarter of 2017 compared to the same quarter in 2016.
The CEO of the ASTL, Benson Hersch, said:
“The figures from our members show that the bridging finance industry is in excellent shape. It shows that the industry has remained resilient despite the threat of Brexit and low growth in the economy.”
Hersch goes on to say that bridging finance is an excellent alternative to traditional finance.
Bridging loans used to be seen as a small niche financial product, but now they are widely available. In situations where traditional finance is not immediately accessible to lenders, bridging finance loans can be quickly processed and are particularly suitable for time-sensitive deals.
Despite a degree of uncertainty over the outcome of the Brexit deal, competition amongst lenders is fierce, which has kept the price of bridging finance down. A bridging finance broker can source the most suitable deals for borrowers who want quick and flexible short-term loans. Loan applications can be made from individuals and businesses for a variety of purposes.