Bridging loans written by Association of Short Term Lenders members increased 13.8 per cent in 2015 to £2.59bn.
But the trade body says while completions are still increasing at double the speed of the mainstream mortgage market, the pace of growth has slowed over the past year.
ASTL chief executive Benson Hersch says: “Bridging finance continues to outstrip the main mortgage market as more brokers and borrowers turn to bridging loans. Members are recording increased business volumes and it is therefore little surprise that the bridging industry has become such an integral part of the mortgage funding market.
“It will certainly be interesting to see whether or not the decline in loan applications at the end of last year will have an impact on the bridging market in the coming months. Either way, sentiment remains highly positive and the final figures for 2015 in terms of loans written and the loan book value show strong demand for bridging loans.”
The figures are taken from responses from ASTL members. The whole market is estimated to be at around £4bn.