The worth of swing loan books held by loan providers in the sector increased 5 percent in Q2 to a high of £7.1bn.
Despite this, information gathered by the Association of Short Term Lenders (ASTL) revealed that the worth of applications and conclusions decreased over the three-month duration.
During the quarter, the worth of bridging conclusions fell by 5.3 percent to £1.3bn when compared to the previous quarter. Meanwhile the worth of applications contracted by 5.9 percent quarter-on-quarter to £9.2bn.
Average loan to worths (LTVs) likewise dropped from 59.3 percent in Q1 to 57.8 percent in the 3 months to June.
Vic Jannels, CEO of the ASTL said: “The short-term loaning sector continued to show its flexibility and durability in the 2nd quarter of this year, throughout which duration members integrated loan books have actually gone beyond £7bn for the very first time.
“Whilst applications and completions were slightly down on the previous quarter, they were both higher than the same period last year. Given that we are still faced with the vagaries of an uncertain economy, and faltering property market, this represents another very strong performance.”
He included: “We cannot disregard the larger financial environment, which is putting higher pressure on exit methods therefore it’s important that loan providers continue to take a robust method to underwriting to help guarantee the marketplace continues to grow in a mindful and sustainable method.
“In doing this, the market will be well placed to help even more customers to finance transitional periods in the future.”
Shekina is the industrial editor at Mortgage Solutions. She has more than 4 years’ experience in the B2B publishing market, with previous markets consisting of the accounting, family pet, funeral service, hospitality, retail and jewellery trades.
She presently reports on existing occasions in the home mortgage market and communicates with monetary customers to produce sponsored material.
Follow her on Twitter at @ShekinaMS