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MFS secures £500m funding line from institutional investors

mortgage adviser with clients

Market Financial Solutions (MFS) has secured £500 million of new institutional funding which will allow the business to expand its lending activity across both the buy-to-let (BTL) and bridging markets.

The new funding from various leading institutional investors adds significant capacity and funding diversification to support the continued growth of MFS’s specialist lending products.

The specialist lender’s BTL products have seen strong demand in the market since launching in January 2022. From this new funding, at least £200 million will be ring-fenced to boost MFS’s BTL proposition as it continues to grow that area of the business.

With this new line of funding, MFS is focused on providing funding certainty in a turbulent market, ensuring it is in a position to work effectively with the many brokers and borrowers who are seeking BTL mortgages and bridging finance in the current climate.

MFS’s BTL mortgages are suitable for clients in complex situations, as well as corporate or overseas structures, including offshore companies, trusts and foreign borrowers. MFS also lends on a wide variety of higher yielding property types, such as large HMOs, multi-unit freehold blocks and holiday lets.

The specialist lender 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: “Following the success of our BTL product since the launch last year, this additional funding will further increase our capacity. We continue to support borrowers and brokers by providing certainty and flexibility in the current climate of high inflation and rising interest rates. 

“Despite the turbulence that the property and specialist lending markets faced last year, we expect high demand for our BTL products in 2023.  Even in challenging times, MFS has continued to lend, and our strong relationships with our funding partners gives us the confidence and ability to provide funding certainty to brokers and borrowers. As such, when we say yes to a BTL mortgage or bridging loan, we mean it, and we look forward to helping even more borrowers with their requirements moving forwards”.