The lender is also offering a choice of a two, four or six per cent product fee depending on the borrower’s needs. MFS said adding a higher fee to the loan instead of paying upfront would allow borrowers to benefit from lower interest rates and possibly get a larger loan.
MFS allows borrowers to increase the maximum loan size available by rolling up the interest or deferring part of the interest rate until redemption.
It said the higher product fee meant borrowers could access the option priced 0.25 per cent higher than the base rate by deferring two per cent of the full rate.
The lender has also extended its fixed rate terms on its new range from three to five years but has maintained the two-year early repayment charge (ERC) period, which it said provided flexibility and enabled borrowers to exit a deal.
Paresh Raja (pictured), CEO of MFS, said: “At MFS, we appreciate it isn’t always easy for brokers and landlords to find solutions that combine rate, fee and overall loan size that allows them to purchase or refinance. Our new lower rates and wider fee options provide great flexibility and leverage to support a much wider group of customers.
“In the current climate, we see this as a shining example of how specialist lenders can innovate in order to help brokers and property investors, giving them the support they need to act with confidence.”
