The Bridging and Development Lenders Association (BDLA) has sought to reassure the market following confirmation that Market Financial Solutions has applied to enter administration.

The trade body issued a statement after the specialist lender confirmed it had made an application to the court to enter administration, citing a temporary restriction on access to its everyday banking facilities.

As reported by Mortgage Soup on 21 February, Market Financial Solutions said the move was taken to protect employees, investors and stakeholders while it works through what it described as an unexpected banking-related issue.

BANKING RESTRICTION

The lender said the decision followed a temporary restriction on access to its banking facilities, arising from what it called a procedural matter with its primary banking provider. It stated that the underlying business remains asset-backed and operationally sound.

Founded in 2006, Market Financial Solutions has operated in the bridging and commercial property finance market for nearly two decades. The lender said it has managed more than £1.2 billion in cumulative lending over its lifetime, with its loan book reaching approximately £2.4 billion at its peak.

In a statement previously reported by Mortgage Soup, founder Paresh Raja described the move as “an extremely difficult moment” for the business and said entering administration would provide a structured and regulated environment in which the company and its assets can be protected.

BDLA RESPONSE

Responding to the development, the Bridging and Development Lenders Association said it recognised the impact on staff, brokers and borrowers.

Adam Tyler, chief executive of the BDLA, said: “Our immediate thoughts are with the team at Market Financial Solutions, as well as the many brokers and borrowers who have built long-standing relationships with the firm over nearly two decades.

“Market Financial Solutions has been a prominent and active participant in our sector, and we are encouraged by the management team’s proactive steps to seek a structured environment through administration to protect the business’s assets and ensure the continuity of loan management and servicing.

“While any instance of a lender entering administration is significant, it is important to distinguish between a systemic industry issue and a specific operational challenge.”

The BDLA said it would continue to monitor the situation and remains committed to upholding standards of professionalism and stability across the short-term lending market. It added that it stands ready to support members, their staff and the wider intermediary community during the period ahead.

Mortgage Soup understands that staff at Market Financial Solutions were told about the administration application on Saturday (21 February) afternoon and told to come into the office as normal today.