Market Financial Solutions (MFS) has lowered its bridging loan rates to combat a potential property market slowdown as a result of the General Election, Brexit and Christmas period.
MFS has created a dedicated fund of £50 million for all its bridging products at the new lower rates to ensure loans can be delivered as quickly as possible.
The London-based bridging lender is now offering rates of 0.59% for its first-charge loans on residential and buy-to-let investments with a loan-to-value (LTV) rate of 60%. This is down from 0.75% previously.
Rates have also dropped for first-charge residential loans with a 70% LTV (down to 0.75%) and 75% LTV (down to 0.85%). MFS’ ‘bridging to exit development’ rates have been reduced to match these rates for first-charge loans on residential and buy-to-let investments.
The company has also lowered rates for its first-charge loans on commercial and semi-commercial properties – the new rates are 0.69% for loans with a 60% LTV (down from 0.99%), 0.89% for loans with a 70% LTV (down from 1.09%), and 0.99% for loans with a 75% LTV (down from 1.19%).
The lower rates will be available throughout December and January, helping to galvanise activity during the quietest time of the year for the property market. This lethargy has been exacerbated by uncertainty surrounding the upcoming General Election (12 December 2019) and the approaching Brexit deadline (31 January 2020).
Paresh Raja, pictured, CEO of MFS, said:
“As a bridging lender, MFS strives to deliver both an exceptional quality of service but also highly competitive rates. At this time of year, when activity in the property industry typically slows down, we wanted to seize the initiative and inject fresh life into the market.
“We understand there is a degree of hesitancy among some property investors at present, particularly with the election and Brexit deadline both fast approaching. But our new lower rates have been designed to help support those keen to press ahead and complete on new acquisitions.”