Bridging lending continued to grow in the first quarter of 2023, despite an economic slowdown and a more subdued mortgage market.
Figures from the Association of Short Term Lenders (ASTL) show that figures for completions, applications and the loan books all grew in the first three months of this year.
The figures, compiled by auditors from data provided by members, show that bridging completions passed £1.4 billion in Q1, which represents an increase of 11.8% on the previous quarter.
Bridging applications reached £9.8bn during this quarter. This represents an increase of 13.1% compared to the the fourth quarter of 2022.
The latest data from the ASTL shows that the value of loan books has also increased, rising by 4% to just over £6.8 billion.
ASTL CEO Vic Jannels says: “The somewhat indifferent performance of the economy has not affected demand for short term finance, which continues to demonstrate that it can provide a versatile source of funding during all economic cycles.
“Loan books have reached another record high of more than £6.8bn and applications have now shown an increase in each of the last five consecutive quarters.
“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.”
