Bridging Finance Sector Rockets by 49%

    LONDON, ENGLAND, May 30, 2015 /24-7PressRelease/ -- The value of bridging loans in the UK has rocketed by 49% in the year to March, according to the Association of Short Term Lenders (ASTL).

The data shows that the bridging loan sector is going from strength-to-strength and the value of loans was worth GBP2.35 billion.

In addition, the number of applications for bridging loans is also continuing to rise with a year-on-year increase of 29%.

However, when the figures are analysed on a quarterly basis, the number of applications slowed in the first quarter of 2015 but, ASTL says, this was probably down to the uncertainties of the general election outcome.

Bridging industry did well last year

The ASTL's chief executive, Benson Hersch, said: "The bridging industry did well last year and the outlook remains positive for 2015.

"Our members have a positive outlook and remain optimistic about the future.

"Bridging outperforms the mortgage industry and is here to stay."

Indeed, the Council of Mortgage Lenders (CML) has just revealed that the gross lending for April is down 1% on the month previously to GBP16 billion.

The figure is also 4% down on last year's figure of GBP16.7 billion for April.

A spokesperson from bridgingloancenter.co.uk said

"The bridging finance industry is going from strength to strength, we've had a major rise in demand in the last 2 years."

UK's mortgage market is undergoing 'incipient' recovery

The CML says that the market seems to be undergoing an 'incipient' recovery.

An economist at the CML, Mohammad Jamei, said: "We seem to be on the cusp of a modest lending recovery with improving household finances and earnings inflation.

"Mortgages are also being offered at competitive rates and we expect stronger lending in coming months."

A director of Vantage Finance, Lucy Hodge, said that the general election created uncertainty in the UK's mortgage lending market.

She added: "The election result gives clarity to the market and property companies are reporting a surge in interest, so we should see a return to growth moving into summer for the mortgage lending sector."

Second property income fund closed by LGP

Meanwhile, Legal and General Property (LGP) has closed its second UK property income fund and it's believed to be a largest amount of capital raised in over 12 months.

The fund reached GBP403 million and when gearing is included, the fund has a gross asset value of GBP610 million.

Institutions around the world rushed to subscribe with 16 major investors committing equity on behalf of their investors to the fund.

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