A leading institutional funder has committed £50 million of funding to support Market Financial Solutions’ (MFS) recently-launched 753 (75-cubed) initiative.
In May, the bridging lender unveiled 753 as a means of fast-tracking residential deals as the stamp duty holiday tapers down. It committed £75 million of funding for residential bridging loans at a loan-to-value of 75% and an interest rate of 0.75%.
This rate is throughout the term of the loan with no extra hidden costs, step-up rates or exit fees.
Now, following high levels of demand in the three weeks since its launch, an additional £50 million has been added to the funding pot . It further strengthens the 753 scheme and will ensure more loans can be delivered to prospective property buyers.
MFS created the new drive to support property buyers and investors while the stamp duty holiday remains in play. As it stands, the tax break tapers down from 1 July before returning to normal levels from 1 October. With house prices currently experiencing double-digit annual growth, there is huge demand from prospective homebuyers and property investors to enter the market.
Paresh Raja, CEO of MFS, said: “Our new 753 initiative has proven extremely popular. We all know that the property market is booming right now, but buyers need support as they look to secure finance quickly and complete on deals. Our better rates, high LTV and dedicated funding lines are doing just that – we’re super-charging residential deals.
“The additional £50 million funding line is a clear indication of the success of the scheme. In the face of significant demand from borrowers, we’ve partnered with other financial institutions and investors to reinforce funding lines, meaning we can serve an ever-expanded network of clients. We’re excited to see just how many deals we can complete through the 753 initiative in the weeks ahead.”