The latest data from the Association of Short Term Lenders has shown that bridging loans continued to grow in size and popularity in the first quarter of the year despite lacklustre wider economic conditions.
According to the trade association, bridging completions passed £1.4bn in the first quarter of 2023, an increase of 11.8 per cent on the December 2022 quarter.
Quarter ended 31 Mar 2023 compared to Quarter ended 31 Dec 2022 Article continues after advert | Quarter ended 31 Mar 2023 compared to Quarter ended 31 Mar 2022 | Year ended 31 Mar 2023 compared to Year ended 31 Mar 2022 | |
Loans written (£) | +11.8% | +36.3% | +20.4% |
Loan book (£)* | +4.0%* | +52.1%* | +52.1%* |
Applications (£) | +13.1% | +54.3% | (0.9)% |
*As at the end of the period
Compiled by auditors from data provided by members of the ASTL, the figures showed that applications also edged upwards, reaching £9.8bn during the quarter.
This represented a 13.1 per cent increase compared to the previous quarter.
Likewise, the value of loan books also increased, up by 4 per cent to a high of just over £6.8bn.
Commenting on the data, ASTL chief executive Vic Jannels said demand for bridging loans has not been affected by the “somewhat indifferent performance of the economy”.
He noted that short-term finance continues to demonstrate that it can provide a versatile source of funding during all economic cycles.
“Given the ongoing challenging economic environment, it’s important that lenders continue to take a robust approach to underwriting to help ensure the market continues to grow in a cautious and sustainable way so that it can help even more customers to finance transitional periods in the future,” Jannels said.
jane.matthews@ft.com
