In the Spotlight with Paresh Raja

In the Spotlight with Paresh Raja

In The Spotlight

We caught up with Paresh Raja, CEO of Market Financial Solutions

1. How did you get into the loans industry?

Before entering the loans industry, I enjoyed a diverse career extending from professional consulting to the setting up of an independent investment group. Having worked primarily as a senior professional consultant charged with restructuring companies around the world, I always found myself somehow involved in commercial lending and specialist structured finance, with a particular emphasis on property investment. This was a vital time in my career – I was able to help businesses grow by improving efficiency and embedding within them a strategic foresight for the future.

When I decided to establish MFS in 2006, I undertook the exact same approach that I previously did for the clients I was consulting – immersing myself in the key market trends underpinning the loan market at the time and developing a business strategy and structure that catered to the changing demands of the industry.

10 years on, MFS has acquired a respectable market share of the UK bridging market, and while I don’t want to give too much away at this point, we have some exciting plans to expand our operations over the coming 12 months.  

2. How does MFS differ from its competitors?

MFS has experienced impressive growth over recent years and the reason for this is simple – we specialise in complex bridging cases through a personalised and responsive delivery of service.

In my experience, the “one size fits all” approach is of little value in the bridging market. The industry has thrived on the delivery of tailored loan solutions, and this is something we take great pride in offering at MFS. No matter how complex, intricate or unique a case may be, we focus on providing a bespoke solution directly relevant to the individual needs of our clients.

This is something I do not see as often as you’d expect, and explains why MFS has been able to organically build an extensive network of brokers and clients over the past 10 years. What’s more, in an age of online platforms and fintech applications, it’s this form of personalised service that people still want to see.


3. What are the biggest issues facing the mortgage market in the current economic environment, and what should advisers be aware of when dealing with clients?

There’s no shortage of events affecting the mortgage market in this current economic climate. In Britain, we have experienced one of the most momentous years in recent history with the Brexit decision, and interest rates being set to a record low of 0.25%. At the same time, demand for residential property across the UK remains strong. On 21 March, London property prices hit a record high, and this trend is something we will continue to see in the future.

What concerns me is that traditional lenders are failing to keep up with the changing dynamics of the property market. Independent research released by MFS found that 2.57 million Brits have lost out on a property purchase because another buyer was able to present a more attractive offer. This was despite having an initial offer accepted. Advisers need to be aware that as property demand increases, clients will naturally desire access to fast loans. That’s why specialist finance options such as bridging are vital in meeting investor demand.

4. How has the referendum affected the bridging industry?

The Brexit referendum did initially induce some uncertainty and hesitation from investors looking to expand their property portfolio. Some bridging companies were initially affected by this hesitation, but the doom and gloom over a crashing UK property market never came to being. The UK property market has continued to flourish in the nine months following the Brexit decision, and with Theresa May finally enacting Article 50, the ensuing two-year negotiation period will provide greater clarity for investors and developers alike.

5. What are you and MFS hoping to achieve the most this year?

As I mentioned earlier, we have some exciting prospects on the horizon. Core to our activities will be increasing our client base and ensuring that we are able to support investors as they look to consolidate and expand their investment portfolio. We also have a number of exciting research initiatives on the way, which will reveal how investors are addressing political, economic, and industry events throughout the year.

6. What are your predictions for the property industry this year?

Aside from Brexit, one thing the property industry will need to be equipped to deal with in the 2017/18 tax year is the raft of new policy reforms directed specifically at buy-to-let investors. The imposition of stamp duty for additional property purchases last year has dissuaded some investment, and I’m interested to see how the market will react to the tax relief changes on mortgage interest that will be introduced as part of the new tax year on April 6.

That being said, just like in previous years, 2017 presents some fantastic property opportunities for established and prospective investors, and it’s important that they are able to access them through fast and effective finance options. I believe that specialist finance will continue to play an important role in supporting the growth of the UK property industry, and I look forward to seeing what the market will deliver for bridging over the coming years.     

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Latest Comments

Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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bnellyb
bnellyb 08 Apr 2017

There will be an exodus of private landlords over the next 5 years as tax changes take effect, private landlords provide an important service to the rental market, why do housing associations and councils...

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Fred Cassman
Fred Cassman 07 Apr 2017

"Make it look like you are at home": often people forget this and share on facebook their location!

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jared townsend
jared townsend 05 Apr 2017

It'll be interesting to see how & if the Government's asset sale regarding mortgages helps

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