The Hope FleXi is that it allows any combination of the number of months that can be serviced or retained.
Hope Capital has unveiled a new bridging loan which is tailored to suit the affordability of the client.
Called the Hope FleXi, the new product is that a borrower can not only service the loan whilst having some of the interest retained, but also spread repayments on the serviced part over the entire term of the loan.
This means that the monthly interest payments are reduced for the borrower, potentially by over 90%.
Another feature of the Hope FleXi is that it allows any combination of the number of months that can be serviced or retained.
By shaping the loan through the selection of the number of months to be retained and the number to be serviced, the product hopes to allow the borrower to achieve a balance between cash flow, affordability, optimal loan amount and loan-to-value.
Additionally, by structuring the loan in this way the borrower can ensure that the monthly payments can reflect the repayments of any future remortgage they have planned to support their exit strategy, or to ensure that any rental income from the property can cover the repayment or interest cover ratio.
Additionally, this may help provide a satisfactory credit profile for future refinancing.
Jonathan Sealey (pictured), chief executive officer of Hope Capital, said: “The introduction of our Hope FleXi bridging loan is all about offering the flexibility to meet the needs of the borrower.
“We understand that individual circumstances – the borrower’s own financial position and the nature of the property they are investing in – will vary greatly from case to case.
“At Hope Capital, we make it our job to take all these different situations into account and do our utmost to lend in any scenario where the loan achieves the borrower’s aspirations, is affordable and enables a viable exit strategy."
