how MT Finance is continuing to find solutions
2022 has been an unpredictable year for the mortgage market, to say the very least. After nearly two and a half years of soaring property prices pushed up by a shortage of stock, buyers are now contending with a Bank Rate of 3%, high inflation and the beginning of a recession. And while September’s ill-fated mini-Budget initially seemed to herald good news with the stamp duty threshold raised (which Jeremy Hunt has since announced will come to an end on 31st March 2025), the resulting fallout only brought more uncertainty as many high street lenders temporarily withdrew products, often with little to no notice. With many buyers no longer fitting into mainstream lenders’ rigid criteria, attention has firmly been on alternative sources of funds and who can best help a borrower.
This has required specialist lenders like ourselves to provide borrowers with solutions, not problems.
a sense of stability
Here at MT Finance we have created a sense of stability for our clients over the years by remaining consistent, transparent and flexible. We have always taken a common-sense approach to bridging loans which hasn’t changed, and if there is a way to make a case work, we will do it.
Finding solutions has always been part of the MT Finance DNA and that is no different now. After the events of recent months, we listened to borrowers and brokers alike and identified that a crucial issue is monthly repayments and making these as manageable as possible. With flexible payment options already in place and available to all borrowers – from part-payment to retaining interest for the duration of the term of your bridging loan – these are features you could really benefit from if monthly payments are a cause for concern.
riding out the storm
If you are an investor or landlord, a bridging loan could equip you with the flexibility you need to ride out the storm. As rates will likely settle over the next two years, taking out a 24-month bridging loan will give you the space you need to wait until the market has started to stabilise. This will allow you to exit once there are longer-term options available, hopefully with more attractive rates.
Another option is to use the term of your bridging loan to undertake a light refurb or renovation. Not only could this help to increase the property’s value but it could also allow you to generate the maximum rental yield. Once the works are complete and rates are more manageable, you will be able to exit out of the bridging loan onto longer-term finance, ideally at a time when rates are more favourable. Our lack of exit fees or early repayment charges means you will not face any financial penalties for exiting before the end of the term.