Loan volumes rose by 2.7% in the year to September 2015 compared to an increase of 12.3% the year before.
The total bridging loan book rose to £2.41bn in September 2015, an increase of 0.8% from the quarter ending June this year. In the corresponding period last year the loan book had risen by 15.3%.
The ASTL attributed the slowdown to criteria relaxing in the mainstream market and bridging lenders becoming stricter.
Benson Hersch, its chief executive, said: “The figures released today are significant. The application figures reflect the continued appetite for bridging loans. Short-term loans continue to be seen as a valued source of finance and are still very much in demand.
“The amount of applications and completions have both continued on an upward trajectory since September 2011 but, despite this, the rate of growth of bridging loan completions is slowing. Part of the reason could be that with more new lenders entering the market and increased availability of funds to existing lenders, brokers are shopping around so that in fact there aren’t more cases, but each case is being offered to several lenders.
“Although there has been a slowdown in the rate of completions, the demand for bridging finance is up and competition in the bridging sector is strong, however I do not expect to see runaway growth, but a sensible and steady expansion of the sector.”.
