Market Financial Solutions (MFS) has extended the freeze on its bridging rates until October, despite the Bank of England’s 14th consecutive base-rate hike.
Specialist lender MFS initially announced in June that it would not change its bridging rates until August. It has now further committed to not moving rates for another two months.
Since December 2021 the Bank of England (BoE) has increased the base rate from a record-low 0.1% to a 15-year high 5.25%. The central bank’s hiking cycle has resulted in a great deal of uncertainty across the mortgage and specialist lending markets, including rate changes and product withdrawals.
MFS is looking to provide certainty to brokers and borrowers by holding rates across all its bridging products.
Paresh Raja, CEO of MFS said: “The constant changing of rates, along with regular product withdrawals, are major headaches for borrowers and brokers in today’s property market. At MFS, thanks to the strength of our funding lines and the success of our growing loan book, we are in a position to commit to a rate-freeze, providing brokers and their clients with much-needed certainty.
“Positively, inflation is now falling at a healthier pace, and the BoE’s latest base rate hike was smaller than had previously been expected. So, while there will undoubtedly still be challenging times ahead for the UK property market, the light at the end of the tunnel is getting a little brighter. An end to sky-high inflation and the hiking cycle will, in turn, bring a sense of calm and optimism to the sector.”
