MFS secures £150m funding line
Market Financial Solutions (MFS) has secured a £150m funding line.
The credit line will be used to finance bridging loans and increase its bridging market on vanilla loans.
Funding is available immediately for borrowers who meet the minimum requirements, as well as to property investors and businesses seeking to complete on residential and commercial property transactions.
The onboarding of the additional credit line follows a significant increase in enquiries for bridging loans from property investors who are keen to take advantage of the stamp duty holiday before it ends on 31 March 2021.
With more than half a million homes in the middle of a transaction, it has been forecast that more than 300,000 sales are at risk of not meeting the deadline.
Paresh Raja, chief executive of MFS, said: “Brokers and borrowers are crying out for certainty, with many having been let down other lenders when trying to complete on a deal.
“What’s more, the end of the stamp duty holiday is fast-approaching, and buyers want to take advantage of this tax break – they can only do this by having access to loans that can be deployed in days, not months.
“Many lenders do not have the funding lines or expertise in place to meet this demand. This has resulted in some lenders overpromising and underdelivering, putting thousands of property transactions at risk of collapsing.
‘That’s why investors are turning to experienced lenders like MFS with a proven track record.
“This £150m funding line comes at an opportune moment, both for MFS and the property market.
“Investors have been impressed by the strength of MFS’ funding lines, particularly when issuing loans and arranging exit strategies during the pandemic. As a result, our credit lines are consistently topped up and ready to be deployed.”