Figures submitted by members of the Association of Short Term Lenders (ASTL) reveal a 14% rise in bridging loans in 2015, as bridging finance continues to outstrip the main mortgage market.
Bridging loans written by ASTL members increased by 13.8% in 2015, reaching £2.59bn.
Despite the fact that completions are increasing at double the speed of the mainstream mortgage market, the ASTL said that the pace of growth has in fact slowed over the past year.
Benson Hersch, chief executive, ASTL said:
“Bridging finance continues to outstrip the main mortgage market as more brokers and borrowers turn to bridging loans.
Members are recording increased business volumes and it is therefore little surprise that the bridging industry has become such an integral part of the mortgage funding market.
“It will certainly be interesting to see whether or not the decline in loan applications at the end of last year will have an impact on the bridging market in the coming months.
Either way, sentiment remains highly positive and the final figures for 2015 in terms of loans written and the loan book value show strong demand for bridging loans.”
The figures above come directly from ASTL members.
The bridging finance market as a whole is estimated to be at around £4bn.
Here are some of the lenders we work closely with that offer short-term and bridging finance: