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Customer SiteThe latest installment of the West One Bridging Index has been released showing that gross lending is forecast to hit the £1.5 billion mark by the end of 2012.
West One’s quarterly Bridging Index found gross lending in the twelve months from March 2011 to March 2012 rose sharply to reach £1.1 billion, 21 % higher than in the twelve month period from January 2011 to January 2012. The increase is being driven by a surge in lending to residential property investors. With funding costs soaring on the high-street, banks and building societies are scaling back their lending to property investors and upping rates. With the high-street unable to cater for demand, more investors have turned to bridging loans to fund their projects. Bridging lenders are plugging the funding gap left by high-street lenders.
Gross lending in the first quarter of 2012 was £382m, 95% higher than in the first quarter of 2011, and 30% higher than the previous quarter. If the pace of growth continues along its current trajectory, gross lending in 2012 will hit £1.5 billion, an increase of 68% from 2011.
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