Here you’ll find news about mtf, as well as our thoughts on all things property related. As an award-winning provider of bridging loans, we always look forward to sharing interesting industry news with you.

Apply for a bridging loan today, or visit our testimonials page to find out what our clients have to say about us.


MTF 3 times winner of Business Moneyfacts Award for service excellence

Last night, mtf once again won the award for Best Service from a Bridging Finance Provider at the Business Moneyfacts Awards 2018. The prestigious accolade was presented by Claudia Winkleman, at the Lancaster London Hotel.

This is the third time mtf has won this award, having previously scooped the award for Best Service from a Bridging Finance Provider in 2017 and in 2014. It is also the sixth accolade we have received in recognition of the service we provide to our clients and introducing brokers.

Providing an excellent service is at the heart of our business model. mtf is committed to building strong relationships and delivering the very highest standards of service, and we are honoured to have been acknowledged with such a prestigious award as a result of votes cast from our peers in the UK finance industry.

On behalf of the whole team here at mtf, we would like to thank all those who voted for us! We greatly appreciate your continued support.

mtf would also like to extend its thanks to the team at Business Moneyfacts for hosting an exceptional celebration- we had a great night!

The difference between leasehold and freehold

 The use of bridging finance will typically involve the purchase of a property and as a result, it is very important to know the difference between leasehold and freehold. Whether the property is leasehold or freehold will have a notable impact on the running costs of the property, the ability to make changes to it and how easy it is to re-sell.


What is a freehold? 

A freeholder is someone who owns the property and land outright. This person can therefore decide whether they want to make changes to it and do not require permission from anyone else (except the local council). It also means that they are responsible for any maintenance and must pay for things like keeping up their exterior, driveway and garden. Most homes in the UK are under a freehold and the ones that are leasehold are typically under some form of shared ownership scheme.

To recap, a freeholder:

  • Owns the property and land outright
  • Can make changes at their own will
  • Is responsible for maintaining the property, land and garden

What is a leasehold?  

A leasehold means that you own a property for the length of the lease agreement which can be anywhere from 40 years to 999 years. Whilst you have a mortgage and have purchased the property, you still cannot make changes to the property without permission of the freeholder. This could be an individual proprietor or a management company.

Most flats and maisonettes in the UK fall under leasehold which is why it is common to have one communal area, area for waste disposal, shared driveway and garden which is covered in the service charges. You are also required to pay ground rents which as it sounds, is for renting the ground and the cost of this has increased significantly over the last few decades. In fact, research shows that the cost of ground rents is doubling every ten years and the average household is paying £200 to £400 per year. (SOURCE: THE GUARDIAN)

If you are looking to make any additions or renovations to the property such as removing any walls, adding a conservatory or even adding an air conditioning unit, this must first be approved by the freeholder. Plus, the freeholder has the right to charge you for simply making a change to the original property. Some freeholders charge money for just responding to requests to make changes and some will charge hundreds or thousands to make a change go ahead.

One of the biggest debates you can have is that a freeholder may reject your right to have pets in the building. Despite owning the property, the freeholder has the final say as to whether your cat or dog can stay in the same residence. This will be outlined in the lease.

To recap, a leaseholder:

  • Only owns the property for the length of the lease agreement e.g 99 years
  • Cannot make changes without the freeholder’s permission
  • Will usually pay service charges to maintain the area
  • Needs permission to have pets

Why does the length of the lease matter? 

Mortgage lenders usually need a lease to run for 25 to 30 years beyond the end of your mortgage. So, if you have a 25-year mortgage, the lease needs to have at least 50 to 55 years before it ends. Subsequently, they say that it may be difficult to sell a property if the lease is less than 80 years because lenders will not give a mortgage on it. Therefore, it can be worth considering how many years will be left on the lease when you plan to sell it.

If you have been living in the property for more than 2 years, there is always the option to extend the lease by 90 years and there is usually a cost for this. If you cannot agree on cost with the freeholder or you believe that you have been overcharged, you can appeal to the Leasehold Valuation Tribunal.

Can I buy the freehold on a leasehold property 

Yes, you may be able to gain the elusive freeholder status by buying the property outright known as ‘enfranchisement’.

Although the process can involve complex legal procedures and may be costly, it gives a lot of benefits to you as a homeowner, giving you savings on future ground rents, service changes and the freedom to make changes to your property.

Certainly if you live in a block of flats or small development, there is an opportunity to come together and share the costs of the freehold. It means that you can extend your leasehold for 999 years and only have to pay the legal fees, potentially saving you thousands.

Why is this important in bridging finance?

Whether the property is leasehold, or freehold is very important when purchasing a property. If you require bridging finance in order to purchase and develop the flat or home, you need to consider the freedom to make changes to the house and also any additional running costs.

If the ground rents and service charges are high, property owners/ lease holders  need to factor these costs in every month in addition to your rent.

Above all, if you are looking to make changes to a number of flats, you may have to budget additional costs to request these changes. Not only may it cost £10,000 or £20,000 to do an extension, but your freeholder may charge you thousands of pounds just to make the changes.

Finally, the time on the lease will be important when trying to resell the property. In which case, you may have to extend the lease which may cost anywhere between £5,500 to millions of pounds, depending on the property and where it is located.

A bridging loan with mtf can give leaseholders crucial access to finance when they are looking to extend a lease and improve the value of their investment property, preventing them from having to sell at a heavily discounted price.

As an example, mtf was approached by a client was looking to raise funds to extend a lease on an existing property and put down a deposit on an additional investment property. The client had struggled to get financing from a majority of lenders as there was a short timeframe of seven years left on the lease.


We provided a £650,000, 12-month bridging loan, based on an open market value of £1 million. The process to extend the lease then commenced, with further funds provided during the term so the client could purchase a long lease and increase the value of the property.

By extending the lease the client was able to secure a long term buy-to-let (BTL) mortgage. The client was also able to purchase the additional investment flat.

If you would like to speak to a member of the team about how a bridging loan could help- call 0203 051 2331 or email us at

How to apply for a short-term loan

mtf specialises in providing fast access to funds with the average bridging loan completed within 2 to 3 weeks of starting an application.

To get started, you can make an application online and provide a few simple details. We do not require you to fill in any long forms and we can give an offer in principle simply by exchanging details by email or phone.

Information you will need:

  • Name
  • Contact details
  • Property address
  • Loan amount required
  • Your plans for the project
  • Confirm whether it is a first or second legal charge

As a non-status bridging lender, we do not run any credit checks as part of our application or eligibility criteria. We will take a view on CCJs, defaults and arrears and we do not always require evidence of trading history, accounts or proof of income. Instead, we prefer to see the potential value of your property and what your plans are in order to make our lending decision.

The offer in principle

An offer in principle (OIP) lays out the basic terms of the loan, stating that we will agree to lend to you at a specific rate and for a specific duration provided that your information adds up i.e the property and the valuations are accurate.

We aim to send you the office in principle within two hours of hearing from you and the initial plans of your project. The OIP needs to be signed on each page in the bottom corner, and on the last page in the box provided and sent back by email, fax or post. As soon as we receive the signed OIP we will provide our bank details for payment of the valuation fee.


A property valuation typically used for a bridging loan starts at around £400. The pricing varies because the more expensive and typically larger properties require more work and investigating in order to carry out the valuation.

The valuation and how it works

As soon as we have received your payment for the valuation, we appoint an official RICS valuer to arrange a time to carry out the valuation of your chosen property. This is usually within the first 48 hours and to maintain a speedy process, our panel valuers are instructed to produce reports within around 72 hours.

If you have recently had your property or flat valued by an RICS valuer, this will need to be validated within the last 3 months. Every firm used needs to be accepted by mtf – so we will let you know if this is sufficient or another valuation is required.


The valuation or survey will consider several aspects of the property including the age, the area, its condition, size, fittings, positioning and potential for add-ons. In addition, the role of the surveyor is to highlight any potential issues which could delay or impede your plans for development such as planning permission or toxic materials. You can read our guide here on how a property valuation works. 

Instructing solicitors

Whilst the application is taking place, we will request your solicitor’s details so that we can send them our checklist of requirements. When the valuation report arrives, and the report is eligible to proceed, we will get in touch with your solicitor to issue the mortgage deed for signature.

You will need to meet with your solicitor in person to sign the mortgage deed and provide certified copies of your proof of ID (one piece of photographic and two pieces evidencing your address in the last 3 months e.g council tax bill, bank statement, utility bill).

Fund are released

Finally, as soon as our solicitors receive the requested documentation from your solicitors, we are ready to go, and funds are released to you. To make an enquiry, contact us today.

What is the bridging finance industry worth?

The bridging finance industry is currently worth in excess £4 billion, according to data from the Association of Short Term Lenders (ASTL). According to the latest figures, the overall value of bridging loans written in Q3 2017 has increased 38.9% compared to the same period last year.

Benson Hersch, CEO of the ASTL said:

“It shows that the industry has remained resilient despite the threat of Brexit and low growth in the economy.The figures also demonstrate that bridging loans remain an excellent alternative where traditional financing is not immediately available for customers.

“The bridging sector, therefore, continues to provide a vital role in the economy by offering customers access to the capital they need in a responsible and sustainable way.”


The growth of bridging lending

When the credit crunch hit in 2007, the bridging market was relatively unknown in the world of mortgages and was only offered by a small number of specialist lenders.

But as mainstream banks tightened up their lending criteria, there became a gap in the market to assist with homeowners and landlords looking for short term finance. For those looking to move home before their original house has been sold, bridging provides the quick access to finance to move and repay once their original house has sold. A huge market has emerged for buy-to-let investors and proprietors looking to access funds for renovations, refurbishments and development of new and existing properties.


“The bridgingfinance industry has grown significantly since 2011,” Benson tells the Chartered Insurance Institute.

“In September 2011 annual bridging completions were worth only £474million, but the most recent data set to be completed by ASTL members in late 2017 showed that annual completions were worth £2.8billion. Our estimate is that these figures cover only circa 65% of the market, so the actual size of the UK bridging market is more likely to well in excess of £4 billion.”


What is fuelling the demand for bridging finance? 

 Complimenting mortgages: Whilst also a short term alternative to mortgages, bridging finance is also complimenting mortgages and property completions. The report states that this type of finance is no longer just for homeowners who need to complete on the purchase of a new home but the property developers are driving the growth. Bridging is also being used to for fast-growth businesses and even being used to pay inheritance tax bills to release the estate where there is no other short term cash available.


Speed of transactions: Businesses and property developers are attracted to the speed of funding. Whilst mortgages can take several weeks or months, the opportunity to receive funds within 2 to 3 weeks of applying and avoid traditional property chains is very appealing. Repeat customers with a good report with their lenders may get access to funds faster which is only stimulating the growth.


Need for quick sales: In a competitive sector, property developers need access to funds fast. This is a priority for those buying property at an auction which requires payment within 28 days or trying to beat a rival from purchasing their desired property.


Industry competition: With the bridging industry becoming more popular and lucrative, there are more brokers and lenders than before. Whether competing heavily on terms or trying to broker a deal, stakeholders are advertising heavily online, trade shows and in print trying to get attention and potential business. The ASTL currently estimates over 40 active lenders that are part of their organisation and hundreds of brokers across the UK.


Changes in regulation 

Bridging can be facilitated as regulated or unregulated activity, but all lenders must abide by a Code of Conduct and Value Charter which covers all business. Some of the main differences between regulated and non-regulated activity involves the use of credit checks and being able to lend against someone’s primary residence (regulated activity).

The mortgage credit directive was introduced in March 2016 by the Financial Conduct Authority. The new measures were introduced to increase transparency and competition amongst lenders and allow potential borrowers to make better informed decisions.

The key features of the directive require all mortgage offers to be presented in APRC (annual percentage rate of charge) to show all fees and costs associated with a mortgage, for the entire loan term and make it easier to compare against other products. Other key characteristics include the receipt of a European standardised information sheet (ESIS), a 7-day reflection period to give applicants some breathing space to consider alternatives and now all lenders must be able to offer early repayment as part of their loan agreements.


Property Investors Remain Resilient

A third of UK property professionals are set to expand their portfolios in 2018 as appetite for opportunistic deals continues, remaining resilient despite a backdrop of increased challenges.

We polled 109 property professionals as part of our research into the future performance of the UK property sector. Some 33% of investors planned to increase their portfolios, while 50% said they planned no changes in 2018. No-one questioned planned to reduce their exposure to the UK property market.

Of the 33% looking to expand their portfolios, 60% are looking to buy in the South East, compared to 20% that said they were looking to buy in London, as investors look to diversifying their portfolios geographically to broaden outside of the more expensive Capital.

The latest forward-looking results are encouraging especially as 40% of respondents don’t think conditions for landlords and property investors will improve in 2018.

2017 was a challenging year for property investors in the UK, with plenty of significant changes to get to grips with. When asked what had been the biggest challenge for landlords and property investors last year, 43% cited an additional stamp duty charge of 3% when buying an investment property.

Economic uncertainty was the second biggest challenge at 21%, followed by new affordability rules at 16%. Some 15% said accessing funding was the biggest challenge while only 5% cited the stripping back of tax relief.

During 2017, some 45% of those questioned bought residential properties as investments compared to 21% buying foreign properties. 11% bought commercial properties as investments.

While there is continuing uncertainty, particularly over how the Brexit negotiations will unfold, UK property investors remain resilient. The fact that property professionals have continued to invest in the UK, despite the uncertainty and numerous challenges, bodes well for the future of the market. Bridging finance is there as a tool to help investors fulfil their requirements when looking to purchase properties quickly and increase their portfolios. While banks have been scaling back, against a backdrop of increased regulations, bridging finance is more important than ever in providing much needed capital for investors to fulfil their funding needs.

For more information on how a bridging loan could help, call mtf on 0203 051 2331.

The Benefits of Bridging Finance

There are several benefits of bridging loans over other sources of mainstream finance. Most clients are attracted by the speed, flexibility and ability to break property chains when raising finance for a property purchase or business purpose.

mtf has developed a strong reputation in the industry for delivering funds at speed at sensible rates which are clearly transparent to the customers. We have been recognised by a number of industry awards including Best Service from a Bridging Finance Provider at The Business MoneyFacts Awards 2017.

Below we list the main benefits of using bridging finance from mtf.

Avoid property chains


Property developers and investors are able to use bridging to bypass the traditional property chains associated with a typical mortgage. Applying through a mainstream bank can take at least 6 weeks once you have completed the relevant paperwork and received sign-off. For those savvy investors looking to purchase a property within a limited timescale, bridging loan products gives them the opportunity to access funds within 2 to 3 weeks or sooner, without the long traditional checks associated with a bank mortgage.

Access to fast funding

mtf understands that purchasing a property can come with a deadline and the need to complete before someone else does. There are some transactions which are very time sensitive, such as the case of auction finance where you have a 28-day period to provide the outstanding funds for the property.

We have a streamlined process meaning that we have a shorter application form than most bridging lenders and have our own panel of solicitors and recommended surveyors to value your property and complete the transaction as soon as possible.


mtf is passionate about giving our clients full transparency from start to finish. The indicative terms and loan agreement clearly show how much you are borrowing, how long for and the rates charged.

We believe that a bridging loan should either make the borrower money or help save them money – which is why we offer flexibility with no early redemption penalties or exit fees as part of our loan offering.


No credit checks

As a non-status lender, we do not use credit checking to determine your eligibility. Whilst most high street banks and mainstream lenders rely heavily on your credit history, we will always consider those with adverse credit, a history of bankruptcy or CCJs.

Your success at paying other loans and credit in the past is used as an indicator of your creditworthiness and how likely you are going to repay future credit. However, a bridging loan is different to a standard personal loan or credit card because you also have a property which is a valuable asset used as collateral. Hence, you are able to leverage the value of this property in order to access the funds you need.

Instead of credit checks, we prefer to look at the potential of your property and your plans for it. If you have found a property that you can afford and has excellent growth potential, we will gladly consider your application for funding.

Self-employed accepted

One of the biggest challenges for those who are self-employed is getting access to sizeable finance and mortgages. Unfortunately, traditional mortgage lenders see those as self-employed as slightly higher risk because their income is not necessarily guaranteed each month. As a result, the majority of banks will not offer mortgages to those who are self-employed.

Fortunately, bridging finance is more than happy to accommodate those who are self-employed. After all, typical bridging customers are individual property developers who are looking to obtain finance for a property development project.

Capitalise on high-growth opportunities

The nature of bridging finance allows you to capitalise on high-return opportunities. For property developers, it is an opportunity to purchase flats or homes and turn them into a profit and strike whilst the market is hot.

For fast-growing businesses, they can use bridging finance as a way to stimulate their growth period. This could involve using their offices or premises as collateral in order to generate capital used for advertising, staff or purchasing inventory.

Bridging finance gives you the flexibility to access funds quickly to make the most of very high growth and then repay your loan when you are in a better position to do so.

No upfront fees or exit fees

For those looking to get their project underway and are monitoring their cash position very closely, they have peace of mind that they can receive their drawdown with no upfront fees.

In addition, should the customer wish to repay their loan earlier than the date agreed, mtf allows them to do so after 3 monthd and there are no exit fees involved. Whilst standard mortgages and several other lenders in the industry charge a fee for early repayment, mtf are pleased to offer such transparency and flexibility. In fact, if you repay early, you may be entitled to a reduction in interest charged since the loan term is shorter than anticipated. You can read more about early mortgage repayments.

Annual Bridging Trends Revealed

Bridging loan volume rose 10.7% to £534.1m in 2017, compared to £482.61m in 2016 as demand for short term finance in the UK grew, according to the latest Bridging Trends data.

The increase in 2017 volume continues a trend seen in 2016, when activity rose 11.5% on 2015 levels of £432.51m.

The bridging loan market withstood volatility from major political and economic events throughout 2017, which included a snap general election, an increase in inflation and continued uncertainty over Brexit negotiations.

The year kicked off to a strong start, with £118.79m of bridging loans completed by Bridging Trends contributors in the first quarter, before soaring to £150.7m in the second quarter — the highest level of loans transacted by contributors in a single quarter since Bridging Trends launched in 2015.

Volume cooled slightly in the second half of the year, dropping to £142.75m in Q3 and to £122.49m in Q4.

Bridging Trends is a quarterly publication that collects data from bridging lender mtf and a number of the UK’s leading specialist finance brokers: Brightstar Financial, Enness, Positive Lending and SPF Short Term Finance (SPF), to offer a general snapshot of the UK bridging finance industry as a whole.

The split between 1st and 2nd charge loans remained consistent throughout 2017, with 2nd charge lending rising in every quarter. Second charges accounted for an average of 17% of total market volume in 2017 — up from 16% in 2016.

While a significant portion of bridging loan activity was unregulated in 2017, at an average of 54% of all transactions, regulated bridging loans increased market share on previous years to an average of 46% in 2017, compared to 44% in 2016 and 36.6% in 2015.

Regulated bridging loan activity outperformed unregulated bridging loans for the first time in the first quarter of 2017.

Average loan-to-value levels dropped to 46.6% in 2017, down from 49% in 2016 -highlighting that responsible lending levels continue.

Average monthly interest rates remained consistent throughout the year at 0.83%, dropping slightly from 0.85% in 2016 and 0.91% in 2015, demonstrating how bridging finance has become even more competitive.

Mortgage delays were again the most popular reason for clients taking out a bridging loan in 2017- at 29% of all lending, although this was a reduction from 2016 when they accounted for 34% of activity.

Demand for bridging loans taken out for refurbishments and auction purchases on the other hand increased in 2017.

Average loan terms remained consistent in 2017 at 12 months- up from 11 months in 2016. Average completion times averaged 43 days in 2017, down from 45 days in 2016.

For more information please visit

Brokers confident for 2018

According to the results from mtf’s latest Broker Sentiment Survey, a majority of brokers are confident about business growth in 2018.

Some 68% of brokers believe overall market conditions will improve in 2018, a sea change in opinion from January 2017, when only 31% of brokers surveyed were confident about the year ahead.

Half of the 106 brokers surveyed said macroeconomic uncertainty would be the main challenge for UK financial services firms in 2018, while 28% cited the impact of Brexit negotiations, and 13% said the level of market competition would be the biggest challenge. Only 6% of brokers thought regulation would prove a challenge.

Despite this, demand for specialist finance is expected to remain strong, with 84% of brokers preparing for a further rise in bridging finance volume in 2018

after 73% of those questioned reported an actual rise in bridging loan volume in 2017.

Refurbishment was the main reason borrowers took out bridging loans in the last quarter of 2017 at 28%, followed by property purchases and funding development projects, at 19% each.

For the fifth consecutive quarter the South East saw the biggest demand for bridging finance in the UK during the fourth quarter of 2017, at 47% – a 1% drop on Q3.

The geographical spread of bridging finance demand continued in the last quarter of 2017, with brokers noting an increase in demand in Northern Ireland (4%), Scotland (3%) and the North East of England (3%).

After the challenges faced in 2017, it is encouraging to see that brokers’ confidence is strong as we enter the New Year. We’re delighted that brokers see the demand for a growth in bridging finance in 2018 and the reasons are simple, bridging loans provide a real-time solution to the funding gap that has developed as high street lenders come to terms with increased regulation.

We can continue to expect to see a substantial rise in the demand for bridging finance throughout the rest of the year. For more information or to discuss a new enquiry, contact the team on 0203 051 2331.

How Does a Property Valuation Work?

A property valuation is key to determine what level of mortgage you can obtain and how much you can borrow. Bridging loans are always secured and you are using the value of the property in order to borrow money for refurbishments, development or to purchase another property. Therefore, having an accurate valuation of the property is very important.

For mtf, a good valuation gives us peace of mind knowing that your property is in a reasonable state and will maintain its value if sold on the open market or rented out to tenants.

Before we proceed with a valuation, we must have offered you a decision in principle and you should have completed the necessary paperwork. We then instruct an RICS valuer to get in touch and make an appointment with you as soon as possible – with most valuations being arranged within 48 hours. For more information, you can read about our process here.

If you have recently had your property or flat valued by an RICS valuer, this will need to be validated within the last 3 and 6 months to decide whether another survey is warranted and whether this valuation firm can be accepted by mtf.

What does the surveyor do? 

The surveyor will carry out a series of checks to determine the value of the property, checking every single room and taking photos where necessary. Whilst the valuer will be able to get an idea of the place’s value quite quickly, they will typically go back and review all their information and provide you with a report and an official valuation within 72 hours (or sometimes longer).

There are several factors that the surveyor will look at including:

  • The age of the property
  • The condition – wear and tear
  • The size
  • Room layout
  • Fittings
  • Electrics and heating system
  • Storage space
  • Double glazing
  • Roads
  • Positioning of the house
  • Amenities like driveway and garden

The role of a proper valuation can also help you identify any issues with your building project that you may have overlooked. For instance, finding issues such as structural concerns, asbestos or dangerous substances can save you a lot of money down the line. However, your report from a surveyor will not tell you which repairs you need to carry out, but instead make you aware of these in terms of how it affects your property’s value. 


Why do we use an RICS valuer? 

We only appoint RICS surveyors so that your valuation is carried out by fully regulated professionals who:

  • adhere to the ‘Red Book‘ valuation standards
  • are committed to openness and transparency
  • are experts in their field, delivering credible and high-quality reports.



How much does a property valuation cost? 

A property valuation typically used for a bridging loan starts at around £400. The pricing varies because the more expensive and typically larger properties require more work and investigating in order to carry out the valuation.

You are required to pay for the valuation of your properties upfront.

What else affects the value of the property? 

A key factor in the valuation of your property is what the other house prices are on the same road and in the area. This acts as a good benchmark for what people are prepared to pay in that location.

Other factors including the history of the area and whether it is located near good schools, low crime rates and a low risk of flooding can also contribute to a strong valuation. Some areas are up and coming, specifically places that are going through regenerations such as Tottenham and Shoreditch are likely to have properties that will maintain a good value or see significant growth.

Understanding the demand and desirability of the type of property is also important. For instance, the centre of London certainly has a high demand for affordable flats and a limited supply – and this will drive the property’s value higher.

Also, taking market forces into consideration, things like Brexit, interest rates, inflation and consumer confidence can also determine the value of a property.

However, based on the factors above, a property’s value can change within the space of a few months or years. A successful property developer will be able to identify growth and gaps in the market, being able to buy for cheap and sell for a higher price later on.

A Second Approach

An increasing number of people in need of extra cash are turning to second charge bridging finance to purchase investment properties, inject capital into businesses, or make refurbishments in order to prevent disturbing their existing attractive mortgages.


Demand for second charge lending is set to continue to increase throughout the year. In a sustained low interest rate environment, it now often makes more sense for a borrower to release equity on an investment property by taking out a second charge, rather than the prospect of refinancing away from their current deal.

At mtf, we believe a second charge bridging loan is about empowering borrowers to enable them to take advantage of time-sensitive opportunities that can make or save them money.

As an example, mtf recently helped a client who required £2.5 million to redeem an existing second charge loan that was coming to the end of its term, on her £8.5m home.  The client was part way through refurbishing an investment property but the process had been delayed. She didn’t want to remortgage as she intended to sell the investment property once the refurbishment works were complete and didn’t want to be penalised for early repayment.

In just 12 days, mtf provided a £2.5 million second charge bridging loan at 39% LTV. Interest was retained over 12 months, with no exit fees or early repayment charges. No personal guarantees were required.

Our bridging loan meant the client was able to redeem her existing second charge, giving her time to carry out the works in order to significantly increase the value of her investment property. The client will then sell the investment asset to exit the bridging loan, against a higher value.

Furthermore, the SME sector is largely underfunded. Business owners need more innovative options, tailored to meet their needs and one such source that has become a critical tool to fund the SME community, is bridging finance.

new-business-openFor example, mtf was approached by a broker whose clients were looking for £649,000 to purchase their business premises. The clients had been given a good deal by their vendor, but needed to act very quickly.

With only three weeks to complete the purchase, the borrowers opted for a bridging loan as their mortgage provider was unable to complete within the tight timescale.

In just 2 weeks, mtf provided a £649,000 bridging loan, secured by way of second charge, at 59% LTV, over the clients’ residential property.

By taking out a bridging loan, the clients had the funds to complete the purchase of the premises, where they had operated their business from for over 25 years. A 12-month term gave the clients plenty of time to arrange and secure a business loan with their bank, in turn settling the bridging loan.

A second charge bridging loan can be secured on all property types, including buy-to-let, residential and commercial assets, and typically has a 12-month maturity, unlike a secured loan which is a form of longer-term financing.

At mtf we welcome second charge applications and have recently launched a new 24-month second charge bridging loan product. We developed this product to meet with the increased demand for more flexible second charge criteria. As with all our products, no proof of income or personal guarantees are required.

Second charge bridging loans will continue to offer significant financial savings for a wide range of borrowers, not just those who may struggle to obtain finance through traditional routes.

If you have any questions or an enquiry you wish to discuss, please don’t hesitate to call us on 0203 051 2331.