Bridging
MFS secures new £400m funding line
Market Financial Solutions (MFS) has announced that it has agreed a new £400 million funding line, which will be devoted towards growing the lender’s loan book.
The funding comes from an unnamed institutional investor, and will be applied across MFS’s range of bridging finance loans.
MFS pointed to a rise in bridging applications and completions ‒ by 13.1 per cent and 11.8 per cent respectively ‒ in the first quarter of this year, according to data from the Association of Short-Term Lenders, and said it had seen a spike in enquiries from brokers so far this year.
The lender said that “tremors” had been caused in the market by inflation and higher interest rates, with greater numbers of landlords looking to capitalise on new opportunities or fix broken chains.
MFS suggested it was on track to reach its goal of taking its overall loan book to £1.5 billion this year.
Paresh Raja (pictured), CEO of MFS, said that the new funding had come at “an opportune moment”, with MFS “busier than ever” as high street lenders increase rates and pull products.
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He continued: “The property market is obviously facing significant challenges, with higher rates causing would-be buyers to pull out of or delay purchases.
“But with these challenges come opportunities, and there are many investors stepping in to seize properties at a discount as their competition hesitates. Those investors are turning to lenders like MFS for the speed, flexibility and optionality they need right now.”
Back in March MFS announced it had secured a £500 million funding line for both buy to let and bridging loan activity.