MFS is a UK-based specialist lender founded in 2006, and offers financial products to SMEs, property professionals and consumers, including unregulated bridging loans.
With 16 years of experience, this well-established, award-winning lender provides one of the largest ranges of bridging products in the industry, competitive rates, and a simple and transparent process.
In this review, I will take a closer look at MFS, detailing their products’ key features, eligibility criteria, application process, rates and reviews to help you decide whether this lender is the right choice for your needs.
I’ll particularly be focussing on MFS’ bridging loan products.
MFS Bridging
MFS offers a range of unregulated bridging loans from £100,000 to £50,000,000 for residential, commercial and development needs.
These loans can be used to quickly secure property purchases, fund refurbishments, raise capital, or refinance existing loans.
Key features include
- Bridging loans from £100,000 up to £50,000,000, with up to 75% LTV available
- Rates start from 0.55% per month for terms from 3 to 24 months
- Extensive range of bridging products, from residential to commercial
- 1st and 2nd charge available
- Interests can be retained or serviced
- Adverse credit borrowers are welcome
- Instant quote available
- MFS works to your timescale
- Underwriting from day 1 to ensure transparency
Overall, MFS has a great reputation. Their longevity, fast and transparent process, competitive rates and acceptance of complex circumstances make them one of the best options out there.
What are the Eligibility Criteria for a MFS Bridging Loan?
Here are the criteria and special circumstances when applying for a bridging loan with MFS:
General Criteria
| Criteria | Value |
|---|---|
| Accepted Applicants | Individuals, Self-Employed, LTDs, LLPs, SPVs, Foreign Nationals, Offshore Companies, Trusts |
| Age Range | 21 – 85 |
| Location | England & Wales |
| Nationality | All applicants considered from any country other than a sanctioned/blacklisted country |
| Interest Payment Method | Fully retained / Part retained and serviced / Serviced monthly |
Complex Circumstances
- Tight deadlines for auction purchases
- Multiple properties or a whole portfolio
- Large residential House in Multiple Occupation (HMOs)
- Transferring from an individual to a company
- Capital raising
- Replacing existing property finance
- Replacing existing development finance
- Non-renewal from an existing lender
- Business cash flow
- Short-term working capital
- Purchasing a company that owns a property
- Politically Exposed Person (PEP) considered
- Diplomats considered
Simple Circumstances
- Broken chains
- Gifted deposits
- Probate/executors
- Tax, Liabilities, Inheritance Tax (IHT),
- Capital Gains Tax (CGT), VAT
- Divorce settlements
- Defaults
- Annulment of bankruptcy
- Discharging adverse credit
- Exiting Individual Voluntary Arrangements (IVAs)
- Repairing County Court Judgements (CCJs)
- Missed mortgage payments
Application Process for MFS Bridging
The application process for an MFS bridging loan is one of the simplest I’ve seen. It all starts on MFS’ Bridging Loan Calculator. This allows you to input your loan details and receive an instant quote.
Once you’re happy with your loan’s estimated terms, contact MFS and send them your loan enquiry. Their staff will be in touch shortly to discuss the next steps with you.
- Indicative Terms – Once MFS receives your enquiry, they will provide the indicative terms of your loan.
- DIP – MFS then studies your requirements in detail and issues a Decision in Principle.
- Valuation – Valuers will then visit the property, which allows MFS to confirm the terms detailed on the DIP.
- Legal Paperwork – MFS lawyers and yours will work together to progress the case.
- Draw Down – Once the admin work is done, your funds will be available in as little as 3 days.
The front-end process is quite quick and straightforward, with minimal information needed upfront. The use of the calculator prevents back and forth since you’re aware of your loan’s terms straight away.
MFS Rates
Here are the MFS bridging loan rates for 2023.
Residential Rates
| Products | BTL Single Property | Large Single Property | BTL Portfolio |
|---|---|---|---|
| 50% LTV | 0.55% | 0.70% | 0.60% |
| 60% LTV | 0.65% | 0.80% | 0.70% |
| 70% LTV | 0.75% | 0.90% | 0.75% |
| 75% LTV | 0.85% | 1.00% | 0.90% |
| Max. LTV | 75% | 75% | 75% |
| Min. Loan | £100K | £3M | £100K |
| Max. Loan | £3M | £20M | £50M |
Development Rates
| Products | Developer Exit | Permit Development | Light Development |
|---|---|---|---|
| 50% LTV | 0.60% | 0.60% | 0.60% |
| 60% LTV | 0.70% | 0.70% | 0.70% |
| 70% LTV | 0.75% | 0.75% | 0.75% |
| 75% LTV | 0.90% | 0.90% | 0.90% |
| Max. LTV | 75% | 75% | 75% |
| Min. Loan | £100K | £100K | £100K |
| Max. Loan | £30M | £20M | £20M |
Commercial Rates
| Products | Semi-Commercial | Semi-Commercial Large Loan | Commercial | Commercial Large Loan |
|---|---|---|---|---|
| 50% LTV | 0.60% | 0.70% | 0.60% | 0.70% |
| 60% LTV | 0.70% | 0.80% | 0.70% | 0.80% |
| 70% LTV | 0.75% | 0.90% | 0.75% | 0.90% |
| 75% LTV | 0.90% | 1.00% | 0.90% | 1.00% |
| Max. LTV | 75% | 75% | 75% | 75% |
| Min. Loan | £100K | £2M | £100K | £2M |
| Max. Loan | £2M | £15M | £2M | £15M |
2nd Charge Rates
| Products | 2nd Charge Loan |
|---|---|
| 50% LTV | 0.65% |
| 60% LTV | 0.75% |
| 70% LTV | 0.85% |
| 75% LTV | ❌ |
| Max. LTV | 70% |
| Min. Loan | £100K |
| Max. Loan | £5M |
MFS Reviews & Ratings
Overall, MFS receives very positive reviews, earning an ‘Excellent’ TrustScore of 4.7 out of 5 based on over 77 reviews on Trustpilot.
The vast majority of reviews (92%) rate MFS 5 stars. Customers praise the lender’s transparency and experience, as well as its wide acceptance of several types of borrower profiles.
5% of reviews are four stars, 0% are three stars or two stars, and 3% are 1 star. The negative reviews mainly relate to the quality of service, which, in my opinion, has more to do with personal circumstances.
Negative reviews are really limited compared to the overwhelming positive feedback.
Reviews indicate high satisfaction with MFS’s lending services, owing to transparency, speed of execution, and competitive rates. While a minority of customers have faced challenges, my sentiment toward MFS is very favourable.
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MFS FAQs
What distinguishes MFS’s bridging loan services from other financial institutions?
MFS offers a more personalised service due to its potentially smaller size than major banks. Their specialisation in bridging loans ensures a knowledgeable and tailored service.
Can MFS provide a tailored bridging loan solution based on individual financial circumstances?
Yes, MFS has the capacity to provide tailored bridging loan solutions based on a borrower’s unique financial situation. This can be through flexible loan terms, competitive rates, or a bespoke repayment plan that suits your financial circumstances.
How does MFS ensure a smooth transition from a bridging loan to long-term financing?
MFS has a dedicated team of experts to guide borrowers through the process, ensuring all necessary documentation and requirements are met for a seamless transition to long-term financing. They may also work closely with other financial institutions to facilitate this transition.
Does MFS have a streamlined application and approval process for bridging loans?
Yes, MFS offers a streamlined application and approval process to ensure quick approval and fund disbursement. This is particularly beneficial in time-sensitive situations, which are common in bridging loan scenarios.