This bridging loan provider is embarking on a £20m funding drive to support UK landlords and investors
London-based Market Financial Solutions (MFS) has announced it is offering £20m of funding to UK property investors and landlords as it looks to support short-term refurbs and restoration jobs.
Running until June 2018, the initiative, which MFS have dubbed FlipFinance2017, will offer bridging loans between £100k and £1m for projects nationwide, targeted at first and second-time property investors looking to carry out restoration and refurbishment projects.
It comes at a time when the number of empty homes in the UK hits 1.4m, the highest level for 20 years, and with mortgage lending falling in March, MFS Chief Executive Officer Paresh Raja hopes that the drive can help to fuel growth in the housing sector and spur investors and landlords to help bridge the country’s housing gap.
Raja said that, while the property market has remained relatively resilient in the face of Brexit and other ‘seismic’ political events, there was still more to be done to encourage growth in the housing sector.
He commented: “For the sector to continue this impressive growth, support must be channelled to the aspirational investors who will lead this growth forward, a vital objective we are directly addressing through this initiative.
“There is tremendous value locked in a variety of properties across the nation; without the finance options in place to access them, this part of the property market will remain dormant.”
MFS hopes that its bridging loans will provide investors with fast access to capital, particularly in a climate where the aspirations of landlords and potential investors is hampered by the big financial institutions lending retrenchment.
The firm has identified probate, auction, refurbishment and restoration opportunities as the four main categories it is looking to fund, and has said that all applicants will have their securities reviewed by their in-house credit analysis and due diligence team.
Raja added: “To support the refurbishment and restoration projects that are essential to catalyse further movement across the sector, MFS has launched FlipFinance2017 and is very excited to see the results build into fruition.”