£20m funding drive launched to help budding landlords

Market Financial Solutions has launched a £20 million funding initiative dedicated to supporting a generation of first and second-time property investors.

Related topics:  Landlords
Rozi Jones
26th May 2017
garden money

The drive is targeted at refurbishment and restoration projects, tapping into the 1.4m empty homes across the UK.

Running until June 2018, the £20 million funding drive will be made available to nationwide applicants in the form of bridging loans ranging from £100,000 to £1 million. Applicants and their asset-backed securities will be reviewed based on MFS’ in-house credit analysis and due diligence.

As Britain prepares for the snap General Election on 8 June and the formal commencement of Brexit negotiations, MFS’ property investment drive aims to offer investors the fast access to capital necessary to support their short-term investment plans.

With 30% of UK investors turning to traditional asset classes such as property over the coming 12 months, market demand for property is expected to remain strong.  A recent survey of property owners revealed that 88% expect housing prices to rise over the course of the next six months.

However, many would-be property investors, landlords and homeowners face difficulties in accessing finance from traditional lending institutions, inhibiting their investment strategies. According to the latest Bank of England data, a total of 66,837 mortgages were approved for house purchases in March, down 1.6% on the previous month. The number of loans approved for those re-mortgaging also fell for the first time this year to 42,814; meanwhile, the UK’s bridging lending sector grew to £2.83 billion in 2016.

MFS CEO Paresh Raja, said: “In the face of seismic political events this year, the robust strength of the UK property market has certainly proved its resilience. 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. 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.”

More like this
Latest from Financial Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 20,000 landlords and property specialists and keep up-to-date with industry news and upcoming events via our newsletter.