Market Financial Solutions (MFS) has announced it will freeze its bridging rates until October despite the Bank of England’s 14th consecutive base-rate hike.
The specialist lender initially announced in June that it would not change its bridging rates until August – but has now extended that by another two months.
Since December 2021 the Bank of England (BoE) has increased the base rate from a record-low 0.1% to a 15-year high of 5.25%.
This has resulted in uncertainty across the mortgage and specialist lending markets, including numerous rate changes and product withdrawals.
MFS says it is hoping to provide certainty to brokers and borrowers by holding rates across all its bridging products.
Chief executive Paresh Raja says: “The constant changing of rates, along with regular product withdrawals, are major headaches for borrowers and brokers in today’s property market.
“At MFS, thanks to the strength of our funding lines and the success of our growing loan book, we are in a position to commit to a rate-freeze, providing brokers and their clients with much-needed certainty.
“Positively, inflation is now falling at a healthier pace, and the BoE’s latest base rate hike was smaller than had previously been expected.
“So, while there will undoubtedly still be challenging times ahead for the UK property market, the light at the end of the tunnel is getting a little brighter. “