Gross bridging lending increased by 27% in the year to August with the sector now providing £2.9bn of finance for borrowers, West One Loans Bridging Index has revealed.
This marks a significant increase on the annual lending figures reported in August 2014 when the market accounted for £2.2bn of lending.
Duncan Kreeger, director of West One Loans, attributed this increase to the record low rates which are currently available for bridging products.
He said: “While the mortgage market has witnessed year-on-year growth, the rate of improvement is negligible and significantly behind the bridging lending market.
“Bridging lenders and brokers have defied any suggestions of a seasonal slowdown and have worked hard throughout the summer to complete deals, with this stellar service and competitive interest rates helping maintain the attractiveness of bridging lending as a short-term finance solution.
“The £3bn annual lending milestone is now very much on the horizon and it is up to lenders and intermediaries to keep the momentum going and tick off this historic landmark.”