Bridging loan finance and short term finance increased as applications for bridging loans rose by 16%.
Bridging loan figures
The number of bridging loans written rose more than 16% in the second quarter of 2013, according to the latest figures.
The Association of Short Term Lenders (ASTL) reported a 16.9% rise in bridging loans, while the number of applications increased by 5.3% to over 2,600 in the three months to 30 June 2013.
The trade body said the value of bridging loan applications also rose by 15% quarter-on-quarter as its members received applications totalling £1.3 billion, up from £1.1 billion in the previous quarter.
Members of the ASTL lent £281m worth of loans in the three-month period, down slightly from £283m lent in the first quarter of the year.
But it reported an overall increase of more than 3.5% in the value of the lenders’ loan books, as the total loan book at the end of the period was worth £1.14 billion compared to £1.1 billion in the three months to 31 March 2013.
Benson Hersch, chief executive of the ASTL, said: “As well as for traditional purposes of bridging the gap between when people sell one property and buy another, it is clear that bridging and other alternative funding methods are increasingly being used by SMEs to meet their funding requirements.
“Members report steady demand in the current quarter and I expect the next quarter’s figures to continue to show the same increase.”
The ASTL represents lenders which offer bridging or short term mortgages or loans and currently has 23 full members and 11 associate members.
Reported in : www.credittoday.co.uk/article
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