Bridging Loans rise by 16% in second quarter

Posted by John Yates

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.

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Bridging Loans : Information

Bridging Loans & Finance – Leicester, Derby, Nottingham, UK

Greenfield Capital is located in the heart of Birmingham and perfectly placed to service the Midlands and the UK. Greenfield Capital was born out of a requirement for common sense underwriting in bridging, a need for excellent service and integrity in the short term finance market.


Bridging Finance beating Business Bank Finance

Strong evidence now suggests that the government-created Business Bank is not keeping up with alternative forms of bridging finance for small businesses. Since the creation of the Bank in September, it’s played a major part in bankrolling small businesses, handing out at least £300m in loans for small companies. While it’s expected that this number will soon increase, recent trends suggest that bridging finance is playing an even bigger role in small business loan provisions.


Six Month Bridging Loans

A six month bridge loan enables people who only need the loan for a short amount of time to switch to a traditional mortgage without having to pay extra interest by being forced to keep the loan for longer than they need to.


John Yates Managing Director of Greenfield Capital has 12 years commercial and residential property funding experience. John was responsible for managing the secured lending department of a high street bank and brings a wealth of experience in property underwriting.