It commits not to move rates for two more months
Specialist lender Market Financial Solutions (MFS) has decided to extend the freeze on its bridging rates until October.
Despite another base rate hike from the Bank of England, the lender has committed to not moving its bridging rates for another two months, after initially announcing that it would not change the rates until August.
MFS said it was looking to provide certainty to brokers and borrowers by holding rates across all its bridging products.
The Bank of England (BoE) increased the base rate from a record-low 0.1% to a 15-year high 5.25% last Thursday, creating some uncertainty across the mortgage and specialist lending markets, including rate changes and product withdrawals.
“The constant changing of rates, along with regular product withdrawals, are major headaches for borrowers and brokers in today’s property market,” commented Paresh Raja (pictured), chief executive at Market Financial Solutions. “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 BoE’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.”
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