London-based mortgage broker Market Financial Solutions (MFS) has gone into administration, raising fears for landlords with active loans.

The specialist firm, which boasts of offering ‘award-winning bridging and buy-to-let finance’ has removed all information about its services from the website and explains that it has appointed AlixPartners UK LLP, as joint administrators and insolvency practitioners.

Landlords are increasingly using bridging finance to fund property acquisitions or to do refurbishments and rely on specialist finance providers such as MFS due to the complexity and diversity of the lending market.

Gavin Richardson, MD at Mortgage Finance Brokers (pictured right), says the administrator’s investigation highlights the need for rigorous underwriting and asset verification, which may have a knock-on effect of slowing down some specialist, non-bank lenders as they apply extra vigilance.

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“Naturally, there is some uncertainty for landlords who were partway through transactions, and some may now need to explore alternative funding routes” he tells LandlordZONE. “It’s important to stress that this is viewed as a firm‑specific issue. Industry bodies, including the BDLA, have reaffirmed that the specialist lending sector remains robust, well‑capitalised, and continues to provide vital liquidity to the market. For any borrowers caught up in this situation, I recommend speaking with a specialist broker who can connect you with a new lender.”

A number of media reports have flagged fears about wider losses among banks, however Adam Tyler, CEO at the Bridging & Development Lenders Association (BDLA), played down concerns about a knock-on effect. “Market Financial Solutions has been a prominent and active participant in our sector, and we are encouraged by the management team’s proactive steps to seek a structured environment through administration to protect the business’ assets and ensure the continuity of loan management and servicing,” says Tyler.

“The specialist lending sector remains robust and well capitalised and continues to provide vital liquidity to the UK property market. While any instance of a lender entering administration is significant, it is important to distinguish between a systemic industry issue and a specific operational challenge.”

Decision

Founder Paresh Raja (pictured) tells Mortgage Strategy that the decision wasn’t taken lightly.

“The current situation does not reflect a failure of the underlying business or the quality of our assets, but rather a technical and procedural impasse that has temporarily limited our access to everyday banking facilities,” adds Raja.

“Entering administration allows the company to be protected while we work openly and cooperatively with the joint administrators to find a way forward. I remain fully committed to preserving value and doing everything possible to support a positive outcome for all stakeholders.”

The decision follows a temporary restriction on access to the company’s banking facilities, it adds.

Photo: Google

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