The new funding will be applied across the lender's bridging finance products
Bridging loan provider Market Financial Solutions (MFS) has announced that it has secured £400 million of new institutional funding to fuel the growth of its loan book.
The lender said the new funding, which comes from an institutional investor, will be applied across its bridging finance products.
The London-based specialist lender has seen a spike in enquiries from brokers in 2023. With inflation and higher interest rates causing property market turmoil, there has been an increase in the number of landlords and property investors seeking specialist finance to capitalise on new opportunities or fix broken chains as other buyers pull out, and to complete purchases at pace before market conditions shift again.
According to data from the Association of Short Term Lenders, bridging loan applications and completions both rose significantly in the first quarter of 2023 when compared to the final quarter of last year.
With the new funding, MFS said it would double down on its commitment to provide speed, flexibility and certainty to brokers and borrowers in a turbulent market. This includes clients in complex situations, as well as corporate or overseas structures, including offshore companies, trusts, and foreign borrowers.
MFS, which has vowed not to increase its bridging rates until at least August, is on track to achieve its goal of growing its overall loan book to £1.5 billion this year.
“I am delighted to announce this new funding, which comes at an opportune moment,” said Paresh Raja (pictured), chief executive at Market Financial Solutions. “The specialist finance sector is experiencing an uptick in demand as high-street lenders increase rates and pull products – MFS is busier than ever, and this institutional investment will fuel our continued growth.
“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.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, Twitter, and LinkedIn.
