Hope Capital has launched a bridging loan for developers called the ‘marketing bridge’.
Hope Capital has launched a bridging loan for developers called the ‘marketing bridge’.
The bridge is designed to forward fund proposed developments by providing clients with a bridging loan on completion of their building work.
This will give developers an extra six months after paying off the development loan to sell their units.
Jonathan Sealey, chief executive officer of Hope Capital, said: “Our marketing bridge has been carefully designed to cater for the needs of experienced developers.
“For a long time developers have been crying out for a means to fund newly built units so that they have time to market and sell them properly at full market value. Having a bridging loan of this nature should enable them to significantly increase their profit margins whilst also paying off their original higher rate borrowings.
“Being a true principal lender has meant that we can rapidly respond to the needs of the market and come up with the short-term loans that people really need.”
As it stands Hope Capital said developers are frequently forced to sell new units either off plan or with a 20% to 30% discount to pay off their development loan as soon as possible.
Using the bridge developers can take out a loan of up to 75% of the completed value (GDV) of the units.
The offer, which will be valid for a year, will be made before or during the development starts.
