The collapse of London‑based bridging‑loan specialist Market Financial Solutions (MFS) has triggered a significantly sharp rise in insolvencies across England and Wales. Department for Business and Trade data show administrations jumped 82 percent in March, driven by more than 100 real‑estate firms linked to MFS. The failure followed fraud allegations that rattled an already uneasy asset‑backed finance market recently today.

Creditors discovered that banks such as Barclays, Jefferies and Apollo’s Atlas SP Partners had collectively extended over £2bn to MFS, which boasted the ability to fund loans up to £50 million within three days. The firm pledged the same mortgage pools to multiple lenders, prompting accusations of double‑pledging. Regulators have now frozen owner Paresh Raja’s assets worldwide and imposed a Dubai travel ban.

Creditors now allege an £1.3bn shortfall, citing court filings that expose a web of ostensibly “genuine” borrowers tied to Raja. Two lenders, Zircon Bridging and Amber Bridging, forced related entities into administration in March, claiming roughly £238mn vanished into unknown accounts. The Insolvency Service warns the spike may be a one‑off event, but investors remain wary of hidden exposure.