It promises not to increase rates despite recent base rate rise
Despite another base rate increase by the Bank of England, specialist lender Market Financial Solutions (MFS) has said it is not increasing its bridging rates until at least August 2023.
“Brokers and borrowers are crying out for certainty from lenders amid countless changes to rates,” said Paresh Raja (pictured), chief executive of Market Financial Solutions. “At MFS, thanks to the strength of our funding lines and the historic success of our ever-growing loan book, we are in a position to commit to a rate-freeze, providing brokers and their clients with the assurances they are craving.”
Raja added that while there was no question that this was a challenging time for the UK property sector, lenders could still deliver stability by not constantly pulling out of deals and leaving brokers in the lurch.
“That is what MFS prides itself on, and that is why we are confident enough to go on record and promise our rates will not move in the coming months,” he stated in a post announcing the rate-freeze.
Since December 2021, the central bank’s base rate has risen from a record-low 0.1% to 5%, with last week’s hike marking the 13th consecutive increase. This, along with the impact of high inflation and the cost-of-living crisis, has resulted in uncertainty across the mortgage and specialist lending markets, including rate changes and product withdrawals.
MFS committed to holding its bridging rates for the rest of June and all of July. The next Bank of England base rate decision is scheduled on August 3.
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