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

The lender said the new funding, from several institutional investors, will add significant capacity and funding diversification to support the continued growth of its specialist lending products.

MFS revealed that its BTL products have seen strong demand in the market since launching them in January 2022. From the latest round of funding, the specialist lender said that at least £200m will be “ring-fenced” to boost its BTL proposition as it continues to grow that area of the business.

The specialist lender’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 variety of higher yielding property types, such as large houses in multiple occupancy (HMOs), multi-unit freehold blocks and holiday lets.

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

The specialist lender also stated it is on track to achieve its goal of growing its overall loan book to £1.5bn in 2023.

“Despite the turbulence that the property and specialist lending markets faced last year, we expect high demand for our BTL products in 2023,” added Raja.

“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.”

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