A new £20m funding initiative has been launched with the intention of supporting a generation of first and second-time property investors
The initiative from Market Financial Solutions (MFS) is targeted at refurbishment and restoration projects in the £1.4m empty properties across Britain.
On-going until June 2018, the £20m funding drive will be made available to nationwide applications through bridging loans in the range from £100,000 to £1m.
With Britain gearing up for another General Election on June 8th and against the looming backdrop of Brexit, MFS’s property investment drive offers landlords fast access to monies required to support their short-term investment plans.
Over the next year, it is anticipated that traditional asset classes such as property will remain strongly in demand. A recent survey of property owners indicates that 88% expect house prices to increase during the next six months.
This said, many potential investors and homeowners face difficulties in gaining finance from traditional lending institutions. In turn, this is inhibiting many peoples’ investment strategies.
The most recent Bank of England data shows that 66,837 mortgages were approved for property purchases during March – a fall of 1.6% from the previous month. Loans approved for re-mortgaging also fell for the first time this year, to 42,814.
New funding for would-be landlords
CEO of MFS, Paresh Raja, said: ‘In the face of seismic political events this year, the robust strength of the UK property market has certainly proved its resilience. For the sector to continue this impressive growth, support must be channelled to the aspirational investors who will lead this growth forward, a vital objective we are directly addressing through this initiative. There is tremendous value locked in a variety of properties across the nation; without the finance options in place to access them, this part of the property market will remain dormant. To support the refurbishment and restoration projects that are essential to catalyse further movement across the sector, MFS has launched FlipFinance2017 and is very excited to see the results build into fruition.’