Rates start from 0.99% at 50% LTV
Specialist lender Hope Capital has announced that it will now lend on land even without planning permission, offering up to 50% LTV.
Up until now, Hope Capital has only provided a loan suitable for land where planning permission has already been granted. The new offering ties in with its existing product, providing an opportunity for borrowers who need funding to quickly secure a bridging loan on a plot of land without planning permission.
Land that requires planning will initially be written on a different interest rate than land that already has planning. Once the planning has been granted, the lower interest rate will be retrospectively applied for the whole of the original term of the loan.
Rates start from just 0.75% on land with planning, while rates start from 0.99% on land without planning. The lender is offering up to 60% LTV on land with planning, and 50% LTV on land without planning. Other key features of Hope Capital’s overall land offering include three- to 18-month terms, no exit fees, and a minimum loan of £150,000.
Read more: Hope Capital revamps product offering.
Roz Cawood (pictured), director of sales at Hope Capital, said the market for purchasing land is very competitive, which is why many borrowers find themselves in a situation where timescales are tight, and they need to access funding quickly to secure the deal.
“At Hope Capital, we are committed to creating new opportunities, which will support brokers and borrowers, Cawood stated. “This is why we have developed a range of bridging loans for land, both for cases with and without planning permission.
“Our offering provides fast, reliable, and flexible solutions for this purpose, and can be used for purchasing the plot of land, gaining planning permission, achieving an uplift in value either for sale or to refinance for the development.
“It can be rare to find a finance option which accommodates land without planning cases, so we feel very confident this will be a huge success in the market, and will be instrumental in propelling our bridging division into the next stage.”
Last month, Hope Capital announced it had streamlined its overall proposition and introduced fixed rates to provide an even more affordable, flexible and adaptable product range.
