These show continued slow but steady growth for this important sector of the property finance industry.
In the quarter, applications were received for £1.113 billion, while ASTL members lent £288 million worth of loans up from £283 million last quarter. The loan book at end of period was worth £1.102 billion.
Applications were down, but loans written were 1.4% up on the previous quarter; there was also an increase of over 4.6% in total loan books. As applications are often received by several lenders, the decrease in value in total applications is not necessarily relevant as it indicates that more people may have applied just to one lender for their loan, it is therefore the amount lent that is significant.
Benson Hersch, chief executive of the astl says:
“The figures reflect the steady increase I expected revealing the ongoing need for bridging finance. This has not decreased, despite pressure by government and promises by mainstream banks to lend more, as a result, short term loans are filling the gaps in many instances."
“After a significant rise at the end of last year, the current quarter has seen steady demand and I expect the next quarter’s figures, to continue to show a slow but steady improvement.”
