The value of new bridging loans has almost doubled in a year as borrowers looked to £1.8 billion of short term funding to buy property.
Trade group the Association of Short Term Lenders reports total lending soared by 92% in the 12 months ending June 2014.
Figures issued by the body showed the overall loan book value rose by 50.4% the second quarter compared to the same quarter last year, while the value of applications was up 52% compared to the same quarter last year.
However, the number of new applications is showing signs of falling, with 15% fewer applications in the quarter against three months of 2013.
AS|TL chief executive Benson Hersch said: “The dramatic rise in applications for bridging loans seen last quarter has not been repeated. Clearly, previous figures were skewed by one-off factors. This should not obscure the fact that the overall trend is strongly upwards, with our members writing £1.8 billion of loans in the past year.”
Accord Buy-to-Let is cutting some mortgages rates by 0.25% and offering up to £1,000 cashback or free valuations on selected deals.
The rate cuts are on two-year fixed 65% loan-to-value loans.
The range includes two-year fixed rates from 2.79% to 3.44%, with added fees ranging from £195 to £1,800 and cashbacks of between £300 and £1,000.
Accord’s 75% LTV mortgages also see a 0.10% cut across the range.
Virgin Money has launched a new range of buy to let mortgages, including several exclusives through intermediaries for a limited period.
The intermediary exclusive products, available to purchase and remortgage customers, include three buy-to-let deals: a two-year fixed rate at 2.65% at 60% LTV; a two-year fix at 2.74% at 70% LTV and a five-year fix at 3.79% at 60% LTV.
All have a £1,995 product fee and £250 cashback.