MFS has also created a dedicated fund of £50m for all its bridging products at the new lower rates to ensure loans can be delivered quickly.
First charge cuts
The London-based bridging lender is now offering rates of 0.59 per cent for its first charge loans on residential and buy-to-let investments with a loan-to-value (LTV) rate of 60 per cent. This is down from 0.75 per cent previously.
Rates have also dropped for first charge residential loans with a 70 per cent LTV now down to 0.75 per cent and 75 per cent LTV reduced to 0.85 per cent.
MFS’s ‘bridging to exit development’ rates have been reduced to match these for first charge loans on residential and buy-to-let investments.
The company has also lowered rates for its first charge loans on commercial and semi-commercial properties.
The new rates are 0.69 per cent for loans with a 60 per cent LTV, down from 0.99 per cent, 0.89 per cent for loans with a 70 per cent LTV, reduced from 1.09 per cent, and 0.99 per cent for loans with a 75 per cent LTV, a reduction from 1.19 per cent.
Buffer the festive slowdown
The lower rates will be available throughout December and January, which MFS said was to help “galvanise activity during the quietest time of the year for the property market”.
Paresh Raja (pictured), CEO of MFS, said: “At this time of year, when activity in the property industry typically slows down, we wanted to seize the initiative and inject fresh life into the market.
“We understand there is a degree of hesitancy among some property investors at present, particularly with the election and Brexit deadline both fast approaching. But our new lower rates have been designed to help support those keen to press ahead and complete on new acquisitions.”