It offers a 'lifeline' for borrowers
Specialist short-term lender Hope Capital has announced it will now offer 80% maximum loan-to-value (LTV) combined with the lender’s lowest rate on its residential development exit product range.
Designed for completed projects, the loan aims to relieve pressure on borrowers needing to repay outstanding capital to their existing lenders while they find buyers.
The development exit loan includes several key features such as 80% max LTV (additional security may be required), rates from 0.85%, no minimum term, and applicability to residential property only.
Borrowers also have the potential to raise capital for business purposes. Loan amounts range from £100,000 to £5 million with terms from one to 18 months. Additional benefits include no upfront legal undertaking, dual representation, flexible payment options, fast turnaround, a dedicated underwriter, and no exit fees.
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<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Have you been let down on an exit? We’ve got a solution ✅ <br><br>Our dev exit product is back in the spotlight, allowing the repayment of development finance on finished units giving our borrowers capacity to move onto their next project while they find the right buyers. <a href="https://t.co/M2oAwGCgW9">pic.twitter.com/M2oAwGCgW9</a></p>— Hope Capital (@HopeCapital) <a href="https://twitter.com/HopeCapital/status/1807800956723024307?ref_src=twsrc%5Etfw">July 1, 2024</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
“Often, once a borrower has a project which has completed, there will be a limited amount of time to sell the property and subsequently, pay back the loan,” said Kim Parker (pictured), head of sales at Hope Capital.
“Our development exit finance option can therefore be used to raise capital quickly and provide the borrower with vital breathing space to sell the property, while tying up their existing finance obligations.”
Kate Cowan, chief financial officer at Hope Capital, added that the lender has worked with many brokers who have clients in need of this lifeline and predict an influx of new borrowers in the same predicament soon.
“This is why we want our brokers to be reassured that we have ideal options for their clients to switch to a short-term, possibly lower-cost, funding option,” she said.
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