Bridge loans hit record £2.2bn

Gross bridging lending grew 21.8 per cent year-on-year in the 12 months to 1 September, according to the latest West One Loans index.

In those 12 months, lenders advanced a record £2.2bn in loans, up from £1.8bn in the previous year.

On a bi-montly basis, £452m was advanced in the two months to September, up 21 per cent from £374m in the same period a year earlier.

West One Loans director Duncan Kreeger (pictured) says: “Industry growth picked up again over the summer, after a slightly slower period in the spring. Since then, bridging lenders have continued that pattern of solid progress.  Looking ahead to the end of the year and into 2015 this reliable expansion looks set to continue.”

The index shows that the average loan size stood at £497,000 in the 12 months to September, up 15.9 per cent from £429,000 in the previous 12 months.

The average LTV has increased to a 12-month average of 47.3 per cent, from 46.5 per cent in the previous 12 months.

Bridging rates averaged 1.17 per cent over the year to 1 September, down seven basis points from the previous 12-month average of 1.25 per cent.