Specialist finance steps up to help property investors by Tomer Aboody

Thursday, 8 June 2017
According to mtf’s latest Property Investor Survey, 75 per cent of property investors were unable to secure mainstream funding in the past 12 months, with nearly half (44 per cent) attributing affordability as the main barrier.

Thirty-four per cent of those surveyed said they were unable to obtain mainstream funding due to adverse credit and 22 per cent blamed stricter lending criteria.

However, 75 per cent of investors revealed they had managed to raise alternative finance. Of this group, 47 per cent opted for a secured loan as an alternative and 39 per cent opted for a bridging loan.

These results from our Q1 Property Investor Survey highlight the impact of stricter affordability and stress testing from lenders on professional property investors’ ability to obtain mainstream funding.

People’s need for reliable, transparent and quick access to funds is ever-critical, and specialist finance such as bridging loans are now picking up where a more personalised approach to underwriting is required.

One of the biggest selling points of bridging finance is the flexibility the products offer compared to mainstream lending. At mtf we assess each loan request on a case-by-case basis, understanding that black and white criteria and a blanket ‘one size fits all’ approach are not always appropriate.

Specialist finance can be used to work with a multitude of issues such as adverse credit, specialist mortgages for the self-employed and those with unusual income structures, loans for uninhabitable investment properties, and loans on HMOs or multi-units.

It’s certainly been a tough 18 months for landlords, but alternative lenders are stepping in to meet their needs.

Tomer Aboody is a founding directore of MTF. With over 20 years' experience in the property market, both in the UK and abroad, he brings first-hand understanding to the property finance sector. Tomer is the driving force behind MTF's asset-based lending approach and commonsense attitude to underwrting a bridging loan.

MTF is a leading bridging finance lender specialising in short term loans including auction finance, bridging loans, both first and second charge loans and are recognised throughout the industry for its speed and service.

Established in 2008, the company has won multiple awards including Best Service from a Bridging Finance Provider at the Business Moneyfacts Awards 2014, Best Bridging Finance Company at the Financial Reporter Awards 2013 and Best Service from a Bridging Lender at The Bridging and Commercial Awards 2013.