Market Financial Solutions (MFS) has secured a £400m funding line from an institutional investor, bolstering its loan book amid soaring demand for specialist finance.
This funding will be directed towards MFS’s bridging finance products. The company has experienced a significant increase in broker inquiries in 2023 as inflation and interest rate hikes disrupt the property market.
More landlords and property investors are seeking specialist finance to seize new opportunities, quickly complete purchases before market conditions change again, or fix broken chains due to other buyers’ withdrawals.
According to the Association of Short-Term Lenders, bridging loan applications and completions in Q1 2023 rose by 13.1% and 11.8% respectively compared to the last quarter of 2022.
With the newly secured funds, MFS plans to intensify its commitment to providing speed, flexibility, and certainty to brokers and borrowers, especially during this uncertain market period.
This commitment includes catering to clients with complex situations, as well as corporate or overseas structures, which encompass offshore companies, trusts, and foreign borrowers.
MFS aims to grow its overall loan book to £1.5bn in 2023, and this funding will contribute to achieving this goal.
Paresh Raja (pictured), CEO of MFS, said: “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.”
