Castle Trust and MFS slash bridging rates

Rate reductions aim to support brokers and attract property investors

Castle Trust and MFS slash bridging rates

Two lenders, Castle Trust Bank and Market Financial Solutions (MFS), have announced rate reductions across their bridging and related product ranges. 

Castle Trust Bank has cut rates on its bridging loans by up to 20 basis points (bps) per month. Its heavy refurb loans, for example, have seen a reduction from 0.95% per month to 0.75% per month at 70% loan-to-value (LTV).

Other bridging products across its standard, light refurb, and heavy refurb with drawdown ranges have also been reduced by 10bps per month. The bank has also lowered its arrangement fee for all bridging loans from 2.25% to 2.00%. 

“With these new lower rates and arrangement fee, our outstanding service and competitive offering will be even more appealing to a wider range of property investors, helping them take full advantage of the opportunities in today’s market,” said Anna Lewis (pictured left), commercial director at Castle Trust Bank.

Meanwhile, London-based Market Financial Solutions has also reduced rates across its bridging loan products, as well as its Bridge Fusion range, a hybrid product combining bridging finance with a longer-term buy-to-let mortgage.

The Bridge Fusion product, which offers terms of up to 36 months and loans of up to £20 million, is designed for residential, semi-commercial, and commercial properties. 

In addition, MFS has cut rates on its BTL mortgages, with its two-year fixed rate now starting at 4.74%, three-year fixed at 5.14%, and five-year fixed at 5.94%. The lender, which handles loans of up to £50 million, has recently extended an institutional funding line worth £1.5 billion to support its growth and increased product demand.

“With significant price reductions across our BTL, bridging, and fusion offerings, I’m confident brokers and borrowers alike will see real value in our products,” said Paresh Raja (pictured right), chief executive of Market Financial Solutions. “As always, we will continue to deliver certainty and flexibility, while refining our products to meet the unique needs of brokers and their clients, no matter how complex their cases might be.”

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