MFS freezes bridging rates until October

In June, the specialist lender pledged that it would freeze its bridging rates until August and it has now extended its commitment for another two months, despite the latest base rate rise. 

The lender said the 14 consecutive base rate increases had created uncertainty in the mortgage and specialist markets since they rose from 0.1 per cent in December 2021. Yesterday, the Monetary Policy Committee voted to raise the base rate to 5.25 per cent to temper inflation. 

MFS said by holding its bridging rates, it would provide borrowers with greater certainty. 

Paresh Raja, CEO of MFS, said: “The constant changing of rates, along with regular product withdrawals, are major headaches for borrowers and brokers in today’s property market. At MFS, thanks to the strength of our funding lines and the success of our growing loan book, we are in a position to commit to a rate freeze, providing brokers and their clients with much-needed certainty. 

“Positively, inflation is now falling at a healthier pace, and the Bank of England’s latest base rate hike was smaller than had previously been expected. So, while there will undoubtedly still be challenging times ahead for the UK property market, the light at the end of the tunnel is getting a little brighter. An end to sky-high inflation and the hiking cycle will, in turn, bring a sense of calm and optimism to the sector.”