MS Lending Group launches below-market value bridging product
The specialist lender said the product moves away from traditional bridging finance by recognising the difference between the agreed purchase price and the property's market value.
MS Lending Group has launched a new below-market value (BMV) bridging loan designed to provide higher funding levels for property investors purchasing assets at a genuine discount.
The specialist lender said the product moves away from traditional bridging finance, which is typically based on the purchase price alone, by recognising the difference between the agreed purchase price and the property’s market value.
Under the new BMV Bridge product, MS Lending Group will lend up to 90% of the purchase price on residential properties, subject to a maximum of 70% loan-to-value (LTV) against market value.
For commercial properties, the lender will offer up to 80% of the purchase price, capped at 60% of the 180-day value.
The lender said the product enables investors who have negotiated below-market-value purchases to access more funding upfront, reducing the amount of capital required to complete a transaction.
It added that the additional liquidity could then be used for refurbishment works, future acquisitions or portfolio expansion.
Michael Stratton (pictured), CEO and founder of MS Lending Group, said: “Every day, investors put in the legwork to find a genuine bargain – researching the market, building relationships, negotiating hard.
“Yet most lenders treat every purchase the same, whether you paid full price or found the deal of the year. We didn’t think that was right.
“With BMV Bridge, if you’ve done the work to buy well, we want to help you make the most of it. It’s a simple idea: the discount you worked to find should count for something. That’s what this product delivers, faster access to funding, on terms that reflect the deal you actually did.”
He added: “It also helps clients tie up less of their own cash so they can redeploy it into the next deal rather than waiting to refinance and pull equity out later.”
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