Hope Capital the short term lending and bridging finance house, has launched a new product for residential development exit finance. This gives the option to switch to a short-term, lower-cost funding option to those borrowers who have a completed residential development which already prepared for sale.
The new product, offering up to 80% LTV with interest rates starting from 0.69%, gives the borrower extra time to repay outstanding capital back to the lender if they are struggling with their current deadline. It is available on loans from £150k to £5m, with terms up to eighteen months.
Gary Bailey, Managing Director of Hope Capital, commented: “In the current economic climate, with the dual impact of Brexit and Covid-19, both new and experienced investors and developers are facing set-backs due to demand for building materials and labour.
Many borrowers unfortunately at times, find themselves in a position where their current loan is coming to an end, however they have not managed to complete the sale of their development on time.
Investors and developers tend to rely on bridging finance to fund a project, whether that involves covering the cost of building or renovating a property.
However, when the sale stalls and the deadline to pay back the loan is missed, this has a huge impact on the profitability of their development, if they are not in a position to tie up the loose ends of their existing finance obligations.
We recognise this and have created a product which provides brokers and their clients with competitive, flexible and favourable solutions to meet this need and best match their requirements.”
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Hope Capital recently appointed a new operations manager, Jonathan Britstone. In his new position, Jonathan will be supporting teams across sales, underwriting and post-completion.