In general, 15 is not an old age for a company — unless it operates in the bridging sector. This October, we celebrate our 15th anniversary. The milestone presents an opportune moment for reflection.

In 2010, gross bridging in the UK was estimated at £400m. By 2019 this had reached £4bn. Bridging has moved from the realm of alternative finance into the mainstream; today, most investors, businesses and even consumers are aware of it.

MFS has witnessed the growing demand for bridging finance at first hand, with our business scaling in turn. From our founding team of five we are now a company of more than 50.

External shocks have been frequent in the 15 years since our launch: four UK general elections and five prime ministers; the 2007 global financial crisis; the 2016 EU referendum and protracted Brexit process; and, of course, the Covid-19 pandemic. Each has presented unique challenges.

By doing the underwriting at the beginning of the process, we ensure that a ‘Yes’ means a ‘Yes’

There have been other pertinent trends for bridging lenders to grapple with. The Bank of England’s base rate, for example, has fallen from 5.75% in 2007 to the current historic low of 0.1%. During the same period, the average UK house price has risen from £176,000 to £265,000.

And, in the past five years in the property market specifically, there have been significant regulatory reforms, particularly affecting buy-to-let investors, including the additional 3% stamp duty surcharge introduced for second homes in 2016, followed by a tapered reduction in mortgage interest tax relief since 2017 and new regulations for houses in multiple occupation in 2018.

Clearly, it has been a turbulent period. The wider political and economic landscape has been reshaped several times over.

While the focus is often on speed when it comes to bridging finance, a willingness to evolve and adapt to external conditions has been the biggest aid to growth. Flexibility has been key.

Bridging has moved from the realm of alternative finance into the mainstream

We have found that one of the best ways to remain flexible is to put underwriting at the forefront of the whole loan process, so the borrower can speak directly to the team to get the deal through quickly.

By doing the underwriting at the beginning of the process, we ensure that a ‘Yes’ means a ‘Yes’ and we do not go back on our word — our reputation stays intact.

Investment in tools

Investing in the tools to get ‘Know your customer’ and land registry checks completed quickly also helps.

One of the best ways to remain flexible is to put underwriting at the forefront of the whole loan process

And access to multiple funding lines means we are not confined to stringent covenants. This is one way to work with large loans and more complex loans.

The longevity of a successful company is invariably a testament to both its adaptability and the strength of its core values.