Market Financial Solutions secures £400m funding line from institutional investor
Market Financial Solutions (MFS) has secured £400 million of new institutional funding to fuel the growth of the lender’s loan book as demand for specialist finance ramps up.
The new funding, which comes from an institutional investor, will be applied across MFS’s bridging finance products.
Bridging loan applications (+13.1%) and completions (+11.8%) both rose notably in Q1 2023 when compared to the final quarter of last year, according to data from the Association of Short-Term Lenders.
London-based MFS has seen a spike in enquiries from brokers in 2023.
In particular, as inflation and higher interest rates cause tremors through the property market, 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.
With new funding secured, MFS will double down on its commitment 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 is on track to achieve its goal of growing its overall loan book to £1.5 billion in 2023.
Paresh Raja, CEO of MFS, said:
“I am delighted to announce this new funding, which comes at an opportune moment.
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.”