The fund will finance bridging loans for property investors and businesses seeking to complete on residential and commercial properties. It is available immediately for borrowers who meet the lender’s minimum requirements.
MFS launched the initiative to support property buyers looking to take advantage of the stamp duty holiday, particularly as delays from other providers have affected transactions.
The funding comes from MFS’ in-house credit lines and will be topped up as the loans are lent out so the total fund will remain the same.
The initiative is part of the lender’s strategy to support the market’s recovery following the pandemic.
Between 23 March and 21 August, MFS lent over £40m worth of bridging loans. It claimed these loans were issued within days of an application being made due to the immediate availability of the funds.
Paresh Raja, CEO of MFS, said: “As we transition out of lockdown, property investors want to act with certainty. Unfortunately, many lenders are simply not in a position to deploy the finance needed to complete on a property transaction in time. This is putting property chains at risk of collapsing and undermining buyer confidence.
“What homebuyers need right now are assurances from lenders so they can press ahead with purchases. That’s precisely why MFS has launched the £60m recovery fund; helping to support the market at this critical time.”
He added: “Our team of expert underwriters are ready and waiting to process applications and deliver tailored loans through this fund, no matter how complicated a case may be.”