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.


IN THE SPOTLIGHT: limited company product

mtf has launched a new loan product to cater for the major shift in the UK’s buy-to-let market as more landlords choose to set up limited companies in a bid to better manage portfolio assets, following recent changes to property tax.

While investing via a limited company is not a new concept, its use has majorly increased since Chancellor George Osborne announced that mortgage interest tax relief would be restricted to 20% instead of 45% for top rate taxpayers, from April 2017.

Landlords borrowing through limited companies can avoid the changes, instead paying corporation tax.

The limited company buy-to-let index from Mortgages for Business showed over half of buy-to-let lending in the second quarter of 2017 was provided to limited companies, the first time companies borrowed more per quarter than individual landlords, including for both purchases and remortgage transactions.

Despite the increase in limited companies, the number of mainstream lenders offering limited companies buy-to-let mortgages remains low. Moneyfacts data for the end of March showed only 14 lenders provided the option, out of a possible 77 lenders that offered any form of buy-to-let products.

At mtf, we understand the difficulties faced by property investors and our new short-term loan product is designed for all types of company landlords, in order to support this area of the market.

At mtf, we believe bridging loans should be fit for purpose, shunning a one size fits all approach. We are here to work with you to get your loan completed in a matter of days. As a non-status lender, we can take a view on CCJs, defaults and arrears and we do not always require evidence of credit history, accounts or proof of income- instead we focus on the property and the client’s future plans.

mtf Limited Company Product:

  • Loans from £100k- £5m
  • 1st & 2nd charges
  • Up to 70% Loan-To-Value
  • Terms from 3 months-24 months
  • Non-status, adverse credit considered
  • No credit scoring
  • No personal guarantees required
  • No exit fees / early redemption costs
  • Residential / commercial / semi- commercial / HMOs
  • Lend to offshore companieS

For more information, or if you would like to discuss an enquiry with a member of the mtf team, call us on 0203 051 2331. We are here to listen.

Property Investors want stamp duty surcharge scrapped

Three quarters of property investors said scrapping the additional 3% stamp duty hike on buy-to-let and second homes would improve conditions in UK real estate, mtf’s Q2 Property Investor Survey showed.



The introduction of the 3% surcharge in April 2016 has severely limited investor appetite for buying properties with the intention of renting them out. It comes as the property market has slowed across the board amid other changes to stamp duty, including a hike on higher value assets.

The government introduced a series of changes to slow down an overheated property market and reduce the amount of buy-to-let investors.

Meanwhile, 25% of property investors called for a reversal on the changes to tax relief on buy-to-let mortgages. Those changes were introduced in April 2017 and have cut buy-to-let tax relief to 20% from 45%, for top rate taxpayers.

60% of those surveyed revealed they had been negatively affected by the Government’s reduction in mortgage interest tax relief.


However, landlords borrowing through limited companies can avoid the changes, instead paying corporation tax. Some 75% of property investors surveyed revealed they now own properties in a limited company.



In June’s general election, 60% of property investors voted for the Conservative Party.


With 35% citing housing as the policy that impacted their vote the most, followed by the economy and taxes at 30% each.


In total, 100% of those questioned said they felt the Government was not doing enough to support them.


Property investors have been dealt some setbacks, impacted by changes to stamp duty and more recently, changes to tax relief. Despite the changes, many investors remain resilient and mtf is there to support them and fulfil their funding needs.

For more information on how a bridging loan could help, call mtf on 0203 051 2331 or fill in our contact form and a member of the team will be in touch with you shortly.


BRIDGING TRENDS: Bridging loan volume soars in Q2

Bridging loan activity peaked to £150.1m during the second quarter of 2017, a 26% increase on first quarter gross lending and the highest level since Bridging Trends launched.

Bridging Trends, a quarterly publication by bridging lender mtf and specialist finance brokers Brightstar Financial, Enness Private Clients, Positive Lending, and SPF Short Term Finance, launched in 2015 to monitor volume and general trends in the bridging finance market.

Activity during the second quarter of 2017 rocketed as bridging lenders brushed off potential volatility from Brexit and the UK general election to fulfil borrowers funding needs and fill a liquidity gap left by mainstream lenders.

However, average Loan-To-Value (LTV) levels dropped to a new low of 45.4% during Q2 2017, the lowest level since Q1 2015 as borrowers and lenders both took a more conservative approach.

Average monthly interest rates rose for the second consecutive quarter to 0.84%, from 0.83% in the previous quarter, but were lower than 0.88% during Q2 2016.

Refurbishments were the most popular reason for obtaining a bridging loan in Q2 2017, contributing to 27% of all lending as borrowers added value to existing and newly purchased properties.

Mortgage delays were the second most popular reason for getting a bridging loan at 25%. This is the first time since Q1 2015 that mortgage delays were not the most popular reason for obtaining bridging finance.

Unregulated bridging loans accounted for 53.9% of lending in Q2 2017, compared to 49.3% in Q1 2017, reversing the 1st quarter blip where regulated loans exceeded unregulated loans. Aside from Q1 2017, unregulated loans have dominated the landscape, since Bridging Trends started.

The average completion time of a bridging loan application decreased by 11 days in the second quarter to 39 days, compared to 50 days in the first quarter.  This is consistent with the increase in unregulated activity, which typically has faster processing times.

Second legal charge lending increased to 17.2% of all loans during Q2 2017, up from 13.4% in Q1 2017, 16% in Q2 2016 and 14.9% in Q2 2015.

The average term of a bridging loan was 11 months during the second quarter, down from 12 months in the previous quarter.

Key data points from Bridging Trends in Q2 of 2017 are as follows:

  • Contributor lending reaches record high at £150.1m
  • LTV levels hits new low of 45.4%
  • Average completion time quickens
  • Unregulated bridging loans return to outperform regulated transactions
  • Refurbishment most popular reason for accessing a bridging loan

Demand for specialist finance remains strong. Notwithstanding a slight increase in the average monthly cost of credit to the consumer, which is up for the 2nd consecutive quarter.

Most interesting however, for the first time since reporting began, mortgage delays are not the most popular use of a bridging finance loan, having been replaced by refurbishment. Whilst it is too early to form any conclusions this may be indicative of a shift in the market, coming off the back of recent increases in stamp duties, and the changes to tax relief on buy to let property, more investors in this quarter focused on adding value to their existing investment properties.

To view Bridging Trends Q2 2017 infographic, please visit



IN THE SPOTLIGHT: commercial bridging finance

The UK commercial sector has endured some tough times in recent years- with events such as the EU referendum, UK elections, and Donald Trump’s presidency all having their effect on the market. However, in light of slowing growth in the residential market, investors are seeking out opportunities in the commercial market and demand is continuing to increase.

According to the latest data released by HM Revenue & Customs (HMRC), UK commercial property transactions hit a nine-year high, with a total of 127,280 purchases made in 2016/17 –a six per cent rise over figures recorded the previous financial year.

Commercial property is becoming more popular with private investors, many of whom are being driven away from the residential buy-to-let market by the increasing regulation and rising taxes.

Auction house Allsop recently announced it had seen three times the number of buy-to-let converts dipping into commercial property since the cuts to mortgage interest relief for residential buy-to-let properties were announced. Yet, the sector is still greatly under served by mainstream lenders, mainly because of the risks involved due to the volatility of commercial property prices.

Commercial finance is a multifaceted form of finance- there is not a ‘one size fits all’ approach, each loan must be assessed individually and priced according to the risk. The underwriting process is complex and some lenders can be inflexible in their decisions.


Borrowers seeking commercial finance need more innovative options, tailored to meet their needs and one such source that has become a critical tool to fund this community, is bridging finance.

Bridging finance has presented a real-time solution by providing a quick and flexible injection of liquidity to fulfil funding needs. The market is famed for constantly adapting to change and for its product innovation. For example, mtf recently introduced a commercial loan product with a 24-month term, due to demand from our brokers.

A commercial bridging loan can be secured on many property types, including semi-commercial, commercial property, and land. In addition, many income sources ranging from employed, self-employed and sole traders to partnerships and limited companies will be considered. Funds can be used for all existing investments to re-finance and improve cashflow, or to purchase business’s such as hotels, land or retail units.

What’s more, because bridging loans are now much cheaper, they are more appropriate for a wider range of borrowers and a wider range of circumstances.

mtf’s bridging loan products are designed to meet the many diverse needs of commercial property investors. As a non-status lender, we do not require evidence of trading history, accounts or proof of income and do not require personal guarantees. This allows us to take a practical, common sense approach to lending.

As an example, a property development company needed funds to purchase a £4 million commercial asset based in Peterborough, which they intended to convert into offices.

The developers had a specific completion date and were unable to obtain a commercial mortgage in the time-frame required.

As time was of the essence, our broker partner approached mtf and we provided a £1.8m commercial bridging loan, at 45% LTV based on open market value. Interest was retained at 0.95%, over a 12-month term, with no exit fees or early repayment charges.

In just under 3 weeks, the clients were able to purchase the commercial investment asset and the 12-month term gave the client plenty of time to refinance with a commercial mortgage.

At mtf, we remain committed to offering sensible, flexible, non-status bridging finance loans to commercial property investors and SMEs.

Product highlights:mixed-residential


  • Rates from 0.95%
  • Up to 65% LTV on open market value
  • Loans from £100,000- £5,000,000
  • Terms from 3-24 months
  • Commercial/ semi-commercial/ HMOs
  • No exit fees
  • No ERCs
  • Whole of England coverage

why use mtf?

mtf is here to work with you to get your commercial bridging loan completed in a matter of days. As a non-status lender, we can take a view on CCJs, defaults and arrears, and we do not always require evidence of credit history, accounts or proof of income- instead we focus on the property and your future plans.

  • No personal guarantees required
  • No credit scoring
  • Lend to foreign nationals and offshore companies
  • Underwritten offers issued within the hour
  • Average completions within 9 days

Don’t miss out on an investment opportunity, call mtf on 0203 051 2331 or apply online to see how we could help turn your aspirations into achievements.


James Anderson, our Head of New Business and Christian Gugolz, Business Development Manager at mtf, share their highlights from the NACFB Commercial Finance Expo 2017.

The annual event is designed to bring together the top lenders, banks, and service providers who operate in the UK commercial and bridging finance industry.

The day was a great success and we enjoyed the opportunity to meet commercial finance brokers and showcase our product range and service proposition.

For more information on the NACFB and its upcoming events visit:



IN THE SPOTLIGHT: auction finance

Driven by attractive prices and the speed at which a deal can be completed, property auctions are appealing to a wider audience, including buy-to-let investors, who are increasingly visiting auction rooms in a bid to find a good deal.

Property investors can benefit from buying a property at auction below market prices, typically within a 28-day time frame. They can also benefit from contributing smaller deposits of around 10%.

However, an investor wanting to take advantage of these opportunities can often face barriers when it comes to raising funds. Either they are unable to get a mortgage because the property requires major work, or it is virtually impossible to secure a mortgage in the tight 28-day time frame.

live-auctionThese circumstances have caused auction buyers to rethink their financial arrangements and seek alternative methods of funding, with auction finance offering a real-time solution to the funding gap. mtf has seen a notable increase in applications from investors and developers wanting to buy properties at auction.

One of the main benefits of an auction finance loan is the speed at which funds can be delivered. Where a mainstream bank may take several months to put together a loan for a borrower, an auction finance company is often able to make lending decisions within hours of the initial enquiry, so funds could be released in less than a week.

mtf completed a case for a client who needed £215,000 to complete an auction purchase and make renovations to the property. Their mortgage lender couldn’t provide the financing in the time-frame required and so they faced losing the deposit.

mtf provided a £215,000 loan, at 65% loan-to-value, over a six-month term, with no exit fee or early redemption penalty. We managed to provide the loan within 24 hours, saving the client’s deposit. They then had the time to renovate the property and increase its value before refinancing out of the loan with a buy-to-let mortgage.

Some auction finance providers can work with clients to ensure they go into an auction fully prepared and at a competitive advantage. Our clients look at catalogues to identify target properties, setting themselves a maximum threshold they want to pay. We can review their loan options at an early stage, prior to auction, and provide them with indicative terms. This way they can go and bid with confidence, knowing they have adequate finances in place so that a transaction can complete with minimum fuss.

product highlights

  • Rates from 0.89%
  • Up to 70% LTV on open market value
  • Loans from £100,000- £5,000,000
  • Terms from 3-24 months
  • Commercial/ semi-commercial/ residential assets
  • No exit fees
  • No ERCs
  • Whole of England coverage

why use mtf?

mtf is here to work with you to get your auction finance loan completed in a matter of days. As a non-status lender, we can take a view on CCJs, defaults and arrears, and we do not always require evidence of credit history, accounts or proof of income- instead we focus on the property and your future plans.

  • No personal guarantees required
  • No credit scoring
  • Lend to foreign nationals and offshore companies
  • Underwritten offers issued within the hour
  • Average completions within 9 days

Don’t miss out on an investment opportunity, call mtf on 0203 051 2331 or apply online to see how we could help turn your aspirations into achievements.

Specialist lenders step up to help property investors

According to mtf’s latest Property Investor Survey, 75 per cent of property investors were unable to secure mainstream funding in the past 12 months, with nearly half (44 per cent) attributing affordability as the main barrier.




34 per cent of those surveyed said they were unable to obtain mainstream funding due to adverse credit and 22 per cent blamed stricter lending criteria.




However, 75 per cent of investors revealed they had managed to raise alternative finance.




47% of investors got a secured loan as an alternative, while 39% opted for a bridging loan.




Three quarters of investors intend to expand their portfolio in 2017, with 67% targeting London and 33% looking to buy in the South East, in an encouraging move despite changes to tax relief for residential landlords.

A majority of respondents said scrapping an additional 3% stamp duty hike on buy-to-let and second homes would greatly help, when asked how the UK government could improve the private rented sector.

The results from our Q1 Property Investor Survey reflect the impact of stricter affordability and stress testing from lenders on professional property investors’ ability to obtain mainstream funding.

It’s certainly been a tough 18 months for landlords but alternative lenders are stepping in to meet the needs of borrowers.

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

Bridging finance demand increased in Q1

Demand for bridging finance soared in the first quarter of 2017, with 59% of brokers experiencing  a rise in bridging loan volume, up from 31% in the fourth quarter, according to the latest Broker Sentiment Survey conducted by mtf.



The South East saw the biggest demand for bridging loans in the UK at 40%, up from 29% in Q4 2016. The second highest area of demand was London, at 30%.




The most popular reason for taking out a bridging loan in the first quarter was to fund a development project at 30%, followed by the purchase of an investment property, at 20%. Demand for financing investment purchases grew from 6% in the fourth quarter, showing healthy appetite from landlords to take on new properties, despite recent changes to tax relief.




Some 45% of the 100 brokers surveyed said competition was the key issue currently facing the bridging finance sector, while 30% cited delays, followed by regulation at 15%.




When asked ‘where would you like to see more product enhancements in the bridging finance sector?’ The majority (40%) of the brokers surveyed said they would like to see higher Loan-To-Values.  Some 25% wanted greater flexibility from lenders on commercial lending and 15% wanted greater flexibility on adverse applicants.




When it comes to choosing a bridging finance lender for their clients, 40% of brokers said interest rates and pricing was most important, while 30% said speed of completion was paramount.




The feedback from brokers points to a strong need for specialist lending, particularly from developers who continue to support the housing market by providing further supply to meet the ever-constant demand. Bridging finance is increasingly being used as a viable financial tool to provide real time funding to plug any gap before longer term finance can be put in place.

What is Stamp Duty?

Stamp Duty is a compulsory tax paid upon the purchase of property or land in the UK and Scotland. It is a one-off payment that you have to make within 30 days of completion otherwise you risk being charged a penalty. The payment is always made in full and not in instalments.

For those looking at taking out bridging finance to purchase a new build or fixer upper, it is essential that you incorporate stamp duty into your overall costs.

How much stamp duty will I pay? 

The rule of thumb is that the higher the value of your property, the more tax you pay. So you should understand what stamp duty you will be paying when deciding how much you need to borrow.

Prior to 2014, the stamp duty was based on the percentage of your property and this percentage would increase as the value went up. For instance, properties between £125,000 and £250,000 would pay 1% stamp duty and properties between £250,000 and £500,000 would pay 3%.

Since the Chancellor’s Autumn Statement in December 2014, the stamp duty charged is now based on a tiered structure meaning that you pay a percentage on every level.


Example: Based on buying a property for £500,000:

Old system:

  • 1% on a property between £125,000 and £250,000
  • 3% on a property between £250,000 and £500,000
  • At £500,000, you would pay 3% which would equal £15,000 in stamp duty

New system:

  • You pay nothing below £125,000, which is £0
  • You pay 2% between £125,000 and £250,000, which is £2,500 (based on taxable sum of £125,000)
  • Then you also pay 5% on the value of the property above £250,000, which is £12,500 (based on taxable sum of £250,000)

So in total this means you’ll pay £15,000 (£0+£2,500+£12,500). Whilst the amount of stamp duty you pay on a £500,000 property is the same as the old system, the new structure is designed to help those looking to purchase properties of lower amounts.

Recent changes to stamp duty tax 

In the Chancellor’s budget of November 2017, he declared that there will be no stamp duty charged for first-time buyers looking to buy homes below £300,000. (The Independent) This will give them a saving of £15,000 (5% of £300,000) and certainly help young buyers and new homeowners get on the ladder.

Phillip Hammond also declared that in London and other property hotspots, stamp duty would be axed on the first £300,000 of a purchase price up to £500,000 – a cut of up to £5,000.

How much is stamp duty for additional properties?

If you are a property developer with a portfolio of several properties or looking to get a second mortgage on an addition property, you should be aware that stamp duty applies for an additional property and the rate is higher. In fact, the tax charged can sometimes be as much as double than your first property and the minimum property value where stamp duty becomes applicable is £40,000 compared to £125,000.

This uses the same tiered structure, so based on a property worth £200,000, you will pay a total of £7,500 in stamp duty, based on 3% on the first £125,000 (£3,750) and 5% on the next £75,000 (£3,750).


Source: MoneySavingExpert 

How do you pay stamp duty? 

The solicitor who handles your mortgage and property purchase will usually be responsible for paying your stamp duty directly. Some solicitors are eager to have your stamp duty payment cleared as soon as possible which is why some will ask for payment upfront, and others prefer to pay after the property has been full completed.

There is also the option to pay for stamp duty yourself without the help of a solicitor. You will need to locate your unique 11-digit reference number (UTRN) which can be found online here or through your stamp duty return. You can pay the amount in full to the HMRC by phone or transfer funds to the specific HMRC back account, quoting your reference.

There are also options to pay by cheque, post or credit card (this will incur a fee). You may be required to present a valid payslip if you wish to pay by cheque or post as verification.

What happens if you do not pay your stamp duty? 

Paying stamp duty is compulsory and not paying it within 30 days can lead to a fine. For the first 12 months, your fine will be 10% of the overall sum, capped at £300 and this can increase to 20% after 12 months and 30% for over 24 months. This will not have any impact on you completing on the flat or property.

Payments can take up to 3 days which is why lawyers and solicitors like to proceed early on. If you are making payment yourself, you are recommended to get payment in nice and early to avoid any fines and don’t leave things to the late minute.

BRIDGING TRENDS: Bridging activity down in Q1

Gross bridging lending activity slowed in the first quarter of 2017, according to the latest Bridging Trends data.

Data from Bridging Trends revealed contributor gross lending reached £118.79 million in the first quarter of 2017, constituting a 5.5% decrease on Q4 2016 (£125.66 million).  The figure is also down on the corresponding data for Q1 2016 by 5.23% (£125.35 million).

Bridging Trends is a quarterly publication conducted by bridging lender MTF, and specialist finance brokers Brightstar Financial, Enness Private Clients, Positive Lending, and SPF Short Term Finance, designed to monitor the general trends in the bridging finance market.

Regulated bridging loans outperformed unregulated bridging loans for the first time since Bridging Trends was launched (April 2015). The number of regulated loans transacted by contributors increased from 37.3% in Q4 2016 to 50.7% in Q1 2017.

Mortgage delays were again the most popular reason for the use of a bridging loan in Q1 2017 at 31% of all lending, dropping from 35% during Q4 2016. Refurbishment was again the second most popular reason for getting a bridging loan contributing to 23% of all lending.

First charge lending for the quarter rose to 86.6%, from 82.6% during Q4 2016. Second charge transactions dropped slightly from 17.4% in the previous quarter, to 13.4%.

Average LTV levels dropped to 46.2% in Q1 2017 whilst the average monthly interest rates were up to 0.83%, representing an increase of 0.05% on the previous quarter.

The average completion time on a bridging loan application increased by 2 days to 50.

The average term of a bridging loan hit a new high at 12 months.

The significant swing towards regulated lending marks an interesting shift which, in turn, we consider has impacted the average time it takes to complete a bridging loan.  Also, whilst the level of regulated activity is up it is interesting to see rates increase for the first time in 5 reporting cycles.

Whilst it is too early in the year to draw any firm conclusions from this first quarter of data, it is these key parameters we are most keenly observing as we move forward in the year.

For more information, please visit