Market Financial Solutions (MFS) has secured £400m of new funding from an institutional investor to fuel the growth of its lender’s loan book as demand for specialist finance ramps up.

The new funding will be applied across the specialist lender’s bridging finance products.

Bridging loan applications and completions rose notably in Q1 2023 when compared to Q4 2022, rising by 13.1% and 11.8% respectively, according to data from the Association of Short-Term Lenders.

MFS has seen a rise in the number of enquires made by brokers in 2023. This is seen as a result of inflation and the increase in interest rates leading to tremors in the property market.

This has therefore resulted in an increase in the number of landlords and property investors seeking specialist finance to capitalise on new opportunities or fix broken chains as other buyers pull out, or to complete purchases at pace before the market situation changes again.

With new funding secured, MFS has said that it will double down on its commitment to provide speed, flexibility and certainty to brokers and borrowers in a turbulent market.
The company is also on track to achieve its goal of growing its overall loan book to £1.5bn in 2023.

Chief executive officer of MFS, Paresh Raja, said: “I am delighted to announce this new funding, which comes at an opportune moment. The specialist finance sector is experiencing an uptick in demand as high-street lenders increase rates and pull products – MFS is busier than ever, and this institutional investment will fuel our continued growth.

“The property market is obviously facing significant challenges, with higher rates causing would-be buyers to pull out of or delay purchases. But with these challenges come opportunities, and there are many investors stepping in to seize properties at a discount as their competition hesitates. Those investors are turning to lenders like MFS for the speed, flexibility and optionality they need right now.”

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