MT Finance has expanded its forward flow agreement with J.P. Morgan by £1bn, taking the total size of the deal to £2.5bn.

The latest upsize marks a deepening of the strategic relationship between the two institutions, following the original agreement signed in July 2022, which supported the lender’s launch into the buy-to-let sector.

The agreement is designed to provide MT Finance with the funding capacity to scale its product offering in the buy-to-let market and to extend its reach into other areas of specialist lending.

Founded in 2008 by Joshua Elash and Tomer Aboody, MT Finance has recently been pursuing ambitious expansion plans, with this latest arrangement seen as a key enabler for its next phase of growth.

Elash (pictured) said the deal would support the lender in two significant ways. “Firstly, it allows us to improve and expand our product offering on our buy-to-let mortgage business in a very focused and strategically important fashion.

“Secondly, it provides us with the infrastructure to diversify and launch into other areas of the mortgage market, something we intend to do later this year.”

J.P. Morgan has worked closely with MT Finance since the inception of the original forward flow arrangement. Rob Tanna-Smith, managing director at J.P. Morgan, commented: “Over the past three years, we have worked together with MT Finance as they launched and scaled their buy-to-let mortgage offering, complementary to their well-established bridging finance proposition.

“Broadening this collaboration is the natural next step in supporting MT Finance as they strategically position the business for further growth.”

The transaction was advised by Interpath, with Ashurst LLP acting as legal counsel. Stuart Mogg, managing director at Interpath, said the structure provides MT Finance with both flexibility and competitive pricing.

“With strong demand for such financing in the current market, this agreement positions MT Finance to support borrowers navigating an evolving market landscape,” he added.