Bridging sector remains resilient
The value of bridging loans written for the third quarter of 2017 showed a slight drop compared with Q2 2017, according to latest figures from the ASTL.
However, the ASTL said there has been no slowdown over the last 12 months, with the annual figure rising by 16.1% to £3.2 billion. In comparison to the same quarter last year, the value of loans written in the quarter has increased by a massive 38.9%.
Total loan books are continuing to climb, with a rise of 8.3% compared to Q2 2017. Compared to the end of Q2 2016, the value of loan books has risen by 27.7%, to £3.5 billion.
The quarter saw the pace of increases in applications decrease marginally (0.7%) compared to Q2 2017, however applications are up 45.5% compared to the same quarter last year, while those on an annualised basis are up 63.9% on the year ended September 2016; making up a total of £18.9 billion.
Benson Hersch (pictured), CEO of the ASTL, 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.
“The figures also demonstrate that bridging loans remain an excellent alternative where traditional financing is not immediately available for customers. The bridging sector therefore continues to provide a vital role in the economy by offering customers access to the capital they need in a responsible and sustainable way.”