2020 rate crunch
At Market Financial Solutions (MFS), our aim is to ensure that homebuyers and property investors are able to successfully complete on their purchases by offering them access to specialist finance. As a result of our commitment, we have today announced that 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.
We have created a dedicated fund of £50 million for all of our bridging products at the new lower rates to ensure loans can be delivered as quickly as possible to our network of brokers and private clients.
This means we are now offering rates of 0.59% for our 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%). Our ‘bridging to exit development’ rates have been reduced to match these rates for first-charge loans on residential and buy-to-let investments.
We have also lowered rates for our 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).
As a bridging lender, we strive 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, our aim is 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.