Market Financial Solutions has secured £400m of funding from an institutional investor as it bids to grow its loan book.  

The London-based specialist firm points out that the cash will be used to boost its bridging lending.  

The firm says: “As inflation and higher interest rates cause tremors through the property market, there has been an increase in the number of landlords and property investors seeking specialist finance to capitalise on new opportunities or fix broken chains as other buyers pull out, and to complete purchases at pace before market conditions shift again.”  

Across the bridging market, loan applications lifted 13.1%, while completions rose 11.8%, in the first quarter of the year compared to the previous three months, according to data from the Association of Short-Term Lenders.  

Market Financial Solutions adds that it is “on track” to grow its overall loan book to £1.5bn by the end of this year.  

Market Financial Solutions chief executive Paresh Raja says: “The specialist finance sector is experiencing an uptick in demand as high-street lenders increase rates and pull products.”  

“The property market is obviously facing significant challenges, with higher rates causing would-be buyers to pull out of or delay purchases.   

“But with these challenges come opportunities, and there are many investors stepping in to seize properties at a discount as their competition hesitates.”