MBS was officially introduced to the market at the end of April as a joint venture between the Mint Bridging Group and West One Loans founder, Mark Abrahams, as a specialist lender providing first charge, seconds, commercial and low-risk development finance.
Operations director for the group, Paul Wertheim, said: “We recognised a gap in the market and took a chance where other lenders seemed reluctant to venture.”
“On the second charge side of things we put a cap on borrowing and don’t go over 65% loan-to-value,” he added. “We need to be responsible in terms of affordability and be mindful that property prices aren’t rising as much as they once did.”
“We have had a great response to our second charge offering because it’s seen as good value for money in comparison to other means of raising equity – we’ve received 10 enquiries about second charges in just one day last week.”
MBS offer buy-to-let second charge loans up to £2m for a 12-month term to landlords based in England and Wales.
Wertheim said the most common reason that landlords have approached MBS for second charges is to raise finance to expand their property portfolio.
“We did offer seconds before but we didn’t promote it – it was only when someone specifically approached us looking for one that we would consider it.”
MBS also offers low-risk development loans and has just completed a deal providing £300,000 to a developer to complete an eco-homes complex on the outskirts of London.
On the bridging side of the business, Mint enjoyed a record month in March when it completed 35 loans.
Wertheim said, despite things slowing down in April, the business is on track to meet its bridging volume target for the month. Expansion is also planned with a new office building being sought and new appointments to be made in the coming weeks.