Why Brexit will increase borrower demand for specialist finance

Bridging loans are an important tool for brokers and investors seeking fast access to finance. Offering tailored loans individually suited to the needs of the borrower, Market Financial Solutions (MFS) ensures its clients are able to take advantage of property investment opportunities as soon as they arise.

The need for fast and flexible specialist finance options is likely to increase during the UK’s political and economic transition from the European Union (EU). The UK Government has so far failed to give any concrete indication as to how Brexit will be managed following 29 March 2019. And in a similar fashion to what was seen during the global financial crisis, traditional lenders such as mainstream banks are likely to be much more cautious when it comes to issuing loans.

In July 2018, the rate of mortgage approvals for new house purchases dropped by 4.3% on the year, with net mortgage lending at its weakest since February. Taking into account the recent interest rate rise, which has increased the debt of UK households on variable or tracker mortgages, the ability to source credit from high street banks is becoming increasingly difficult.

Paresh Raja offers his expert insight

Drawing from his wealth of experience in the property and specialist finance sectors, Market Financial Solutions’ CEO Paresh Raja was recently called upon by leading industry titles, including The Law Society’s Property in Practice, Property Reporter, Landlord Today and Mortgage Finance Gazette, to offer his expert insight on Brexit.

Recognising property as one of the leading asset classes for investors seeking safe and secure returns, Paresh notes that demand for short-term bridging loans is likely to increase, offering fast and flexible finance options for investors and businesses requiring access to capital.

If you or your clients are planning on acquiring a property in the coming months, or if you would like to find out more about how Brexit could impact the property market, speak to a member of the MFS team today. Our expert underwriters are on hand to provide advice about our tailored bridging loans, ensuring property buyers are ideally positioned to take advantage of investment opportunities.

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