Bridging up 40.4pc year-on-year
The value of bridging loans written by members of the ASTL increased by 38.2% in the quarter ending 30 September 2013, compared to the previous quarter; and by 40.4% year-on-year, compared to the year ended 30 September 2012.
The continuing and ever-increasing popularity of short term loans was reflected in the increasing number of applications which rose by 30% to more than 3,400 compared to the previous quarter.
The value of applications also rose by 31% quarter-on-quarter as ASTL members received applications totalling £1.67bn, up from £1.28bn in the previous quarter.
Benson Hersch, chief executive of the ASTL, said: “The figures reflect an even greater increase than I expected, revealing the ongoing need for, and use of, bridging finance.
“Short term loans continue to be useful financial tools as mainstream lenders still lag behind demand despite increased mortgage lending figures.
“Property prices and sales volumes are increasing, as investors and homebuyers show renewed confidence.
“The economic climate definitely seems to be improving, but it is too early to be confident that the improvement is sustainable.
“I expect that the pace of increase will slow over the next 6 to 12 months, but volumes will stay at present or even higher levels.”
ASTL members lent £390m worth of loans in the quarter, markedly up from the £282m lent in the quarter up until the end of June.
There was also an overall increase of nearly 16% in the value of the lenders’ loan books as the total loan book at the end of period was worth £1.32bn; up from £1.14bn.