"The property market in England is buoyant at the moment, but it is also undergoing changes, resulting in fluctuating levels of demand for different finance products."
The London-based bridging lender has also increased its maximum loan term to 24 months and added a new development exit product to its range of loans.
The changes reflect the increased demand MFS is experiencing for larger loans, as well as deals with longer payment terms. Development exit finance has also proven more popular, with many investors and developers undertaking refurbishments, renovations and extensions of their properties but needing an extension to existing facilities to achieve this.
Elsewhere, MFS’ updated lending criteria sees the company base its LTV ratio on the open market, 180-day value of a property. The company has also reduced its short lease option to leaseholds with 30 or more years remaining, which is down from the previous threshold of 40 years.
Paresh Raja, CEO of MFS, said: “The property market in England is buoyant at the moment, but it is also undergoing changes, resulting in fluctuating levels of demand for different finance products. That’s why MFS has updated its loan criteria to ensure we are delivering bridging solutions that fit with the current needs of property investors.
“Our decision to increase our maximum loan amount to £30 million is a reflection of a significant rise in enquires for larger loans. Both in London and the surrounding commuter towns, we are seeing investors pursue sizeable purchases of residential and commercial real estate, and given the strength of our funding lines, MFS is ideally placed to support such acquisitions.
“The pandemic has also sparked a nationwide boom in refurbishments and renovations, with investors keen to maximise the value of their properties while also bringing them in line with the current demand for additional home working space. Our new development exit product supports such activity and is already proving to be in high demand.”
