Almost a year since the EU referendum, the UK property market has demonstrated remarkable strength, defying speculation of a decline in housing demand. With 30% of UK investors turning to traditional asset classes such as real estate over the coming 12 months, market demand for property is likely to remain strong. Furthermore, a recent survey of property owners revealed that 88% expect house prices to rise over the course of the next six months.
Despite the robust demand within the UK’s resilient property market, many would-be property investors, landlords and homeowners face difficulties in accessing finance from traditional lending institutions, inhibiting their investment strategies. According to the latest Bank of England data, a total of 66,837 mortgages were approved for house purchases in March, down 1.6% on the previous month. The number of loans approved for those re-mortgaging also fell for the first time this year to 42,814; meanwhile, the UK’s bridging lending sector grew to £5 billion in 2016.
In response to the critical need for efficient finance solutions, MFS is proud to announce the launch of FlipFinance2017 – a £20 million funding initiative dedicated to supporting the nation’s budding property investors and landlords in their fledgling investment projects across the UK. This industry-first property investment drive will target refurbishment and restoration projects, tapping into a staggering 1.4 million empty homes across the UK – the highest level for 20 years.
Running until June 2018, the initiative is available to nationwide applicants in the form of bridging loans ranging from £200,000 to £1 million. Applications will be reviewed in line with MFS’ in-house credit analysis and due diligence. Investment categories specific to the funding drive include probate, auction, refurbishment and restoration opportunities.
FlipFinance2017 will help form the foundations of tomorrow’s property portfolios. What’s more, it has been launched at a time when the average asking price for a UK house is at a record high of £317,281 and the average period to save for a deposit stands at a staggering two years.