Bridging Loans Are On The Rise, Even In The Face Of A 4% Dip In Q3

Throughout 2016, there have been significant rises in the amount written out for bridging loans. This is in spite of a new survey announcing that there has been a fall in the value of bridging loans written in Q3.

The Association of Short Term Lenders (ASTL) were the group that carried out the survey, revealing that in the third quarter (ending 30/09/2016), the value of bridging loans was down by 4% in comparison to last year’s Q3. Alarmingly, the results have also indicated a drop of 17.4% on Q2 this year.

When viewed in comparison with last year, the complete value of bridging loans written by ATSL members has actually gone up by 15%.

Although some industry experts have speculated that figures won’t reach the original estimations, this is still looked upon as a positive impression of how the whole of 2016 will be overall.

After an uncharacteristic rise of 61.5% in the last quarter, it has also been reported that quarter on quarter, there has been a decline in value of applications.

Borrowers tend to shop around when it comes to bridging loans, more often than not submitting applications to multiple lenders. This can make the bridging loan application figures a bit vulnerable to large fluctuations.

Consequently, the value of completions generally is not dictated or indicated by the value of applications.

The chief executive of the ASTL, Benson Hersch, had this to say:

“This was the first full quarter after the referendum. Brexit blues, increased stamp duties and impending tax changes all seem to have had an effect. My doubts regarding the record level of applications in the June quarter being reflected in completions in the September quarter proved correct and I predict the same for the forthcoming quarter.

“Bridging figures have been on something of a rollercoaster ride over the past year, having alternatively risen and then dropped, however the size of the total loan book is still well up on the previous year.

“Anecdotal feedback from members in respect of Q4 remains positive, but whilst many are positive about their firm’s performance, the market is definitely showing signs of becoming more difficult. I therefore think that we will end the year well up on last year’s total of £2.4 billion loans written, but we are unlikely to make the £3billion that many were predicting last year.”

This article was written by Matthew Dailly, Managing Director of specialist bridging loan company Tiger Bridging.

About Tiger Bridging:

Tiger Bridging is a specialist bridging finance provider with over a decade in the market. They provide short term property funding solutions across the whole of the UK, offering bespoke and flexible lending terms.

Their funding is free from the restrictions imposed by larger institutions or the mainstream lenders. Their small stable of valued and fast-moving investors, complemented by a select group of hedge funds, provide a steady and reliable flow of capital to clients. Their culture is bespoke and their attitude is proactive. If the deal makes sense, they can get the funding, regardless of the credit status of the client.

Contact Info:
Name: Matthew Dailly
Email: Send Email
Organization: Tiger Bridging Ltd
Address: Kemp House 152 City Road London, EC1V 2NX
Phone: 0207 965 7261

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