The CML estimated a 1.4% annual growth in gross mortgage lending between 2011 and 2012, putting gross mortgage lending at £143bn in 2012.
However, according to the latest West One Bridging Index, the bridging industry saw annual gross lending of £1.57bn in 2012, with gross lending expanding by £653m in a year, from £912m in 2011.
The size of the average bridging loan increased by 36% in 2012 and the number of loans granted rose by 23%.
On a quarterly basis, gross bridging lending expanded by 10% since Q3 2012, when this stood at £399m. Gross bridging in the final quarter was £439m, 49% more than the equivalent period in 2011.
Duncan Kreeger says, “In the autumn, I predicted bridging would break the £1.5 billion mark by the start of 2013. That looks too conservative now. Bridging will smash the £2 billion mark by the end of the year – at an absolute minimum.
“In the twelve months to September, the bridging industry had lent £1.42 billion. Just three months on, it’s 10% bigger. This is being reflected in the size of loans, too. The average bridging loan size rose by 14% to over £450,000 in Q4.”
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