MFS records £45m in bridging loans in second lockdown

Market Financial Solutions (MFS) has announced it recorded £45m worth of bridging loans during the second national lockdown.
 
The bridging lender suggested it had seen its strongest November on record, having experienced a large rise in the amount it lent last month when compared to November 2019.

MFS stated it had been “particularly busy” providing loans to property buyers who were at risk of their transactions falling through, due to other lenders withdrawing products.

Having experienced high demand from clients who had been let down by other lenders, MFS said the economic uncertainty from COVID-19 pandemic has led to a rise in the number of investors and homebuyers having mortgages withdrawn later on in a transaction – despite the loans having been agreed in principle.
 
In August, MFS launched a dedicated COVID-19 recovery fund in response to this trend – with the lender setting aside a £60m pot to ensure loans can be issued quickly to those at risk of a transaction falling through. All of November’s loans came from this fund which is “constantly replenished”, MFS confirmed.
 
“MFS has not been succeeding in spite of COVID-19, but because of it,” said MFS CEO, Paresh Raja.

“The pandemic has left many thousands of homebuyers and property investors scrambling for finance after another lender pulled out – reliable firms with strong credit lines, such as MFS, have been well placed to step in and ensure these transactions go ahead.
 
“For us, the priority throughout 2020 has been to fully commit to supporting clients – when we say yes, we mean yes. This certainly isn’t true of all lenders, and many property buyers have learnt that the hard way in recent months. We’re now looking forward to a successful 2021 as we continue to grow the network of brokers and private clients that we work with.”

    Share Story:

Recent Stories


Will open banking revolutionise the lending industry
Adam Cadle speaks to Jack Tenwick, Head of UK Sales, Yolt Technology Services, about how to get the most out of your lending business and the role of open banking

Mortgage Insider Series 2 Episode 5: Outlook for the UK economy
Listen to our latest episode where we discuss the outlook for the UK economy. We hear from William Hobbs, Chief Investment Officer at Barclays Investment Solutions, who gives his view on what lies ahead for the UK after an unprecedented year of lockdowns, economic turbulence and business uncertainty.

FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.