Available initially to a set group of brokers from MFS' panel, the new products will offer loans between £150,000 and £1.5m per unit, and up to £10m per ultimate beneficial owner.
Both the semi-commercial and commercial BTL options will provide facilities at up to 70% LTV, and an ICR of 130% for all customer groups.
In addition, borrowers can opt for deferred interest or rolled-months options for their facilities.
The new semi-commercial and commercial BTL products are available for a broad range of borrowers and business types, including:
- owner occupiers in their own premise
- retail
- office
- serviced apartments
- borrowers with adverse credit history
- PBSA
- complex borrower structures
- first-time commercial landlords
MFS will also permit light refurb and fit-out, and can also link with an initial bridging facility for more complex situations.
The pilot will last until the end of the year, and evolve based on feedback from its intermediary partners, with the intention of launching fully in the new year.
Paresh Raja, CEO at MFS (pictured above), said: “We are never satisfied standing still, and the launch of the new pilot is another exciting step forward for MFS.
“We are going to bring the speed and flexibility that we are renowned for in commercial bridging and residential BTL into the commercial term sector — coupled with the strength of our funding and our skilled team, this will enable us to execute deals that other lenders cannot.
“We are confident that brokers will find immense value in the new products.”
Mike Cook, chief mortgage officer at MFS, added: “There are a lot of exciting features to the new commercial term proposition — the fact that brokers and their clients can utilise deferred and rolled-up interest to maximise their loan size will likely prove popular, while the speed at which mortgages can be delivered will be another differentiator.
“We know that there has been undersupply, service challenges, and restrictions in many areas of commercial finance, and we constantly get requests for such a product.
“Many property investors are considering opportunities, [and] these new products are designed to enable property investors to seize opportunities with confidence.”
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