MT Finance: products, terms and eligibility

MT Finance is a UK provider of bridging loans. The legal entity named on its site is M T Finance Limited (subsidiary of MT Finance Group Limited), company number 06622832. It is based in London. It gives its founding year as 2008. It is part of MT Finance Group Limited (No. 12393228).

MT Finance was founded in 2008, began in bridging loans and has since added buy-to-let and commercial mortgages. MT Finance Group Limited (12393228) is the parent of five wholly-owned subsidiaries, including MT Finance Limited (06622832) and MTF (NH) Limited, which its site says is FCA authorised and regulated (FRN 925115). Its registered office is in Finchley, London and its operating office is at Broadgate Tower, London.

Everything on this page comes from what MT Finance publishes itself. We show the date we last checked it, and we do not rate or rank lenders.

MT Finance publishes 4 products for UK businesses. The table above gives the amounts and terms as it states them.

• Property purchase bridging: Not published; up to 70% LTV on first and second charges (another page states up to 75% LTV for properties under 60% commercial space).
• Heavy refurb bridging: Further draw-downs as works progress; up to 65% LTV.
• Second charge bridging: Not published; up to 65% LTV on residential and semi-commercial.

Property purchase bridging

Bridging loans for buying residential, commercial and semi-commercial property, up to 70% loan-to-value, with terms of 1 to 24 months (regulated loans up to 12 months, unregulated up to 24). First and second charge loans are accepted. Its page says there are no fees or early repayment charges after one month.

Light refurb bridging

Funds for renovation works on residential, commercial and semi-commercial assets, for landlords, investors and homeowners, with terms of 1 to 24 months. Its page says there are no early repayment charges after one month.

Heavy refurb bridging

Funds for structural works for landlords and investors, up to 65% loan-to-value, £50,000 to £500,000, first charge only, with terms of 1 to 24 months. Its page says there are no early repayment charges after one month.

Second charge bridging

Raises capital against residential and semi-commercial property that already has a first charge, up to 65% loan-to-value, with terms of 1 to 24 months. Its page says there are no early repayment charges after one month.

MT Finance says its finance is used for:

• Buying property and avoiding chain breaks
• Light renovation
• Structural refurbishment
• Raising capital on existing property
• Investment opportunities

Sectors and business types it says it funds:

• Landlords and investors
• Homeowners (regulated loans)
• Property professionals

MT Finance publishes these criteria. Meeting them does not mean an application will be accepted: every lender makes its own decision.

• Homeowners (regulated bridging) and landlords or investors (unregulated bridging).
• Individual and corporate borrowers.
• First-time property investors accepted.
• Security: residential, commercial and mixed-use property within England and Wales.

MT Finance describes its process like this:

1. Submit the case through the broker portal or contact a business development manager.
2. Product guides are available on the site for criteria.

Every application is subject to status and the lender’s own criteria at the time.

A bridging loan is short-term borrowing secured on property, used to bridge a gap until a sale or longer-term finance completes. Interest is often rolled up or retained and repaid with the loan at the end, so the plan for repaying it, known as the exit, matters as much as the property.

Lenders lend up to a share of the property’s value and will want to see that exit. Bridging costs more than long-term borrowing, so it is worth understanding how lenders differ before you compare offers.

Points MT Finance publishes that are worth knowing:

• Secured against property in England and Wales; property may be repossessed if mortgage payments are not made.
• States no fees or early repayment charges apply for repaying after the first month.
• Regulated bridging is mortgage-contract lending to homeowners.

Security and guarantees

Loans are secured on property by a first or second charge depending on the product; heavy refurb is first charge only. Its bridging page says that after one month there are no fees or early repayment charges.

MT Finance’s site states: “MTF (NH) Limited is authorised and regulated by The Financial Conduct Authority (FRN: 925115). Borrowing through MTF (NH) Limited involves entering into a mortgage contract secured against property. Your property may be repossessed if you do not repay your mortgage in full.”

Protections differ by borrower type and loan size. Most lending to limited companies is not regulated consumer credit, so read the agreement and ask the lender what applies to you.

Other providers of bridging loans with profiles here include Octane Capital, Octopus Capital (Octopus Real Estate) and One Stop Business Finance. Each profile uses that lender’s own published terms.

The full list, grouped by product type, is in our directory of UK business lenders.

Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders, so you can weigh this kind of facility against the alternatives. You can check your funding options with a soft search that does not affect your credit score. A full application to a lender may involve a hard search, and any offer is subject to status and lender criteria.