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.