Bridging & Commercial Supplement — Real product, real people, making real decisions

REAL PRODUCTS, REAL PEOPLE, MAKING REAL DECISIONS

in association with

Michael Stratton

A NOTE FROM OUR CEO & FOUNDER

MICHAEL STRATTON

At the end of 2020—in the middle of a pandemic—and after 15 years’ experience at one of the biggest bridging lenders, I set up MS Lending Group. I recognised there was a gap in a huge bridging market for an agile and dynamic lender.

At MS Lending, we are constantly listening to our partners to ascertain their needs, so we can service them best. Our speed, service and flexibility is at the heart of what we do.

We will never let a client down and pride ourselves on the mantra: ‘We are what we do, not what we say we will do’.

Since setting up the business, we have seen a huge appetite for our products, and have lent over £110m in two years. We have only been able to do this by consistently listening to our customers and evolving with the market.

RESPONSES TO THE LATEST EY BRIDGING FINANCE MARKET SURVEY

Over the last few months, the bridging finance space has arguably seen its biggest evolution in recent years, and this is set to continue throughout 2023. Many factors have contributed to this—we caught up with MS Lending Group’s CEO Michael Stratton and managing director Rob Goodall to discuss this further.

What are the key challenges impacting lenders in 2023?

MS: The EY survey shows lenders have become more cautious, and will continue to assess the risk versus reward relative to the lenders appetite.

Getting the money out is the easy part, getting it back is not so easy— this has never been more relevant than in today’s conditions. A key challenge will be managing the transactions which completed during the peak of the market last year, and helping those customers come off those loans in a very different landscape today. Having a clear identity, staying firm on decision making, and sticking to what we do well is our main prerogative during this period.

What should customers consider when choosing a bridging lender?

MS: Customers should focus on what’s most important to them. Many people think rate is the most important, but this is relative to the overall transaction. If a client has committed to buying a property by a certain date and is time pressured, then the rate can potentially become of least importance and speed take priority—this is why our No Valuation product is extremely popular for buyers with time constraints.

The experience of the individuals within a lender should also naturally play a large part in a firm’s credibility to perform, and the client’s choice of lender. As I often remind the team: “It takes many good deeds to build a good reputation, and only one bad one to lose it.”

What are the key capabilities to remain a successful bridging finance lender?

RG: You need to have multiple funding lines, understand your customer and ensure that your own internal processes and procedures are in place to fund transactions in a timely manner. Also, the importance of your back book and working with customers who have gone beyond term cannot be underestimated.

Michael Stratton (left), Rob Goodall (right)

MS LENDING GROUP LAUNCHES NO VALUATIONS UP TO £500,000 ON RESIDENTIAL, SEMI-COMMERCIAL AND COMMERCIAL

JANUARY

2022 SEPTEMBER

MS LENDING GROUP WINS TWO INDUSTRY AWARDS

2022

OCTOBER

MS LENDING GROUP CELEBRATES SECOND ANNIVERSARY

DECEMBER

MS LENDING GROUP CELEBRATES RECORD-BREAKING MONTH, LENDING £17.5M

2023

MARCH

MS LENDING GROUP LAUNCHES NEW MSXC PRODUCT

JULY

MS LENDING GROUP SECURES £50M FUNDING LINE 2022

OCTOBER

2022

DECEMBER

MS LENDING GROUP FUNDS RECORD £7.6M DEAL IN LESS THAN 10 DAYS

2023

JANUARY

MS LENDING GROUP EXPANDS OFFICE SPACE

MS LENDING GROUP REACHES £100M FUNDED

OUR FAMILY The real people, making the real decisons

Michael Stratton CEO & founder

Rob Goodall Managing director

Alexandra Stratton Marketing & partnerships

Amer Watson Relationship manager

Sam Bryce Junior underwriter

Sabrina Ammari Financial assistant

Emily Bell Business processor

Fay Cripps Asset manager

Liam Eccleston Junior creative

Danielle Withnell Business processor Bruno Head of happiness

Surround yourself with good people, and good things will happen

0161 823 7993

mslendinggroup.co.uk enquiries@mslendinggroup.co.uk

customerservices@mslendinggroup.co.uk

OUR PRODUCTS Responsive, reliable & flexible

At MS Lending Group, we do not believe in putting people or properties in boxes. Every case is different, and every loan is individually underwritten. Please treat the below purely as a guide, and send us any enquiries big or small, even if it does not fit with the below.

0161 823 7993 enquiries@mslendinggroup.co.uk

NO VALUATION

On loans up to £500,000 on residential, commercial and semi-commercial

DESKTOP VALUATION

On loans up to £2m

MSXC PRODUCT

Have you already exchanged and/or need to complete within four weeks or less? We have the perfect product for you!

Introducing MSXC, MS Lending Group’s exchange product. Whether it’s an auction purchase, a close completion or just a tight timescale, we can do it!

All credit types considered subject to plausibility

Up to 75% on residential purchases

Up to 70% on semi-commercial and commercial purchases

Guaranteed legal instructed same day as acceptance

ESG PRODUCT

In today’s rapidly changing business climate, attention to ESG issues are becoming critical to long-term competitive success. Sustainability and ESG are now more important than ever.

ENERGY PERFORMANCE

On redemption, MS Lending Group will refund the borrower 1% of the total gross loan amount if improvements have been made to the EPC rating during the term of our loan. (Minimum rating of an C required)

Copy of current EPC rating required before completion, and updated EPC evidenced on redemption

Available on both purchases and cap raises

Residential properties only

Energy Performance products only available for loans paid back within the term agreed

LONDON

£139,500

First charge

Auction Purchase | No val

An urgent auction purchase. Customer had exchanged. Our no valuation product enabled customer to complete within required timescales.

The communication and speed have been second to none. There have been many touch points by both the sales team and underwriter, which has kept the deal moving at pace throughout.

It really helps when all sides are communicating and are motivated in getting the deal done

After being let down by a previous broker, our client approached us with a very tight timeframe to complete on a purchase from receivers. The security was a complex property comprising a pub/hotel with the addition of a plot of outbuildings which were to be developed.

MS Lending Group used a commonsense approach when assessing the deal, allowed for desktop valuations to be used on a commercial property type, and managed to push this through before the clients’ deadline, despite a few last-minute hurdles that we had to overcome!

SUSSEX

£481,000

First charge

Refinance | Full val

A refinance with additional funds to complete minor works. GDV on completion of £910,000.

PERRANPORTH

£257,000

First charge Purchase | Desktop val

Property purchased for £575,000. Speed critical for borrower. Low LTV and multiple comparables enabled us to fund using a desktop valuation.

The support and expert knowledge of the MS Lending Group team provided the much-needed guidance to get us to completion swiftly.

Our client is appeased by the firm’s impeccable service from start to finish, and its efficiency in the whole process for completing the case within three days

I have to say that my experience with MS Lending Group to date has been first class. Quick, direct and to the point, which is just what is required when using bridging. Also, hats off to Sam, Danielle and Fay for always being on the other end of the phone and getting things actioned promptly

LONDON

£703,000

First charge commercial Capital raise | Full val

Valuation provided for another lender, audited by valuer appointed by MS Lending Group to save customer the cost of a new valuation.