Bridging market dips but loan sizes jump: West One Loans

The total value of bridging loans extended during the first quarter of this year hit £5.5bn, according to research from West One Loans.

This is down slightly from the £5.7bn reached during Q4 2018, but the average loan size, says the lender, grew 11 per cent.

West One Loans suggests that, despite there being fewer lenders operating in the market that last year and a static number of property transactions, rates have been kept at an average of 0.95 per cent a month due to “competitive intensity” through product development and the low base rate.

It adds that last year’s final quarter figure was a new high and that beating that figure was “always going to be a challenge”.

“It is positive to see the average loan size increase,” comments West One Loans managing director Stephen Wasserman.

“With the Association of Short-Term Lenders reporting a record number of applications among their membership, it is clear that bridging finance is still very much on an upward trajectory,” he adds.

Recommended

West One details new BTL products

Specialist lender West One has launched a range of first charge buy-to-let mortgage products. The new range will initially be released through a select number of launch partners before enjoying wider distribution “in the near future”. The products start from 3.39 per cent at 80 per cent LTV on loan sizes of up to £2m […]

West One hires three relationship managers

West One Loans has announced the appointment of three new relationship managers. The first, Kevin Glover, will cover the North of England and will focus on brokers who specialise in bridging and development finance. He previously worked as a relationship manager in real estate finance at NatWest, a role he held for over 11 years. […]

Newsletter

News and expert analysis straight to your inbox

Sign up