MFS launches variable rate bridging products

Rates begin from 0.55 per cent plus the Bank of England’s base rate and are available across all its bridging range up to 75 per cent loan to value (LTV). 

The lender said it added this offering to give its borrowers flexibility and said fixed rates were still available to new and existing borrowers. 

Paresh Raja (pictured), CEO at MFS, said interest rates had “dominated discussions” in the sector for the past year and MFS’ main goal was to support borrowers and brokers with innovative products. 

He added: “The launch of our variable bridging rates is a prime example of this, giving greater choice and flexibility at a time when it is sorely needed. 

“There are plenty of borrowers who do not want to commit to fixed terms, preferring a product that will track the base rate should it come back down after a run of hikes from the Bank of England. We are empowering these people by giving them the choice: our fixed rate bridging loans continue as normal, but now the variable rates cater to borrowers with different wants, needs and outlooks.

“We are excited to bring this to market and, as ever, will continue to seek ways to improve our offering in line with what brokers and borrowers truly need from specialist lenders.” 

MFS recently reported that its loan book was nearing £1bn and in response, it was raising its goal of reaching a £1.1bn book by the end of 2023 to £1.5bn. To support its growth, the lender promoted 16 employees and said it was looking to recruit 11 people.