Hope Capital has introduced two new products—Bridge 2 Let and Term 2 Rent.
The bridge-to-let option was designed for borrowers looking for surety of exit for their bridging funding.
It offers loans up to 75% LTV, with rates starting from 0.72% per month.
The facility is split between a 12-month bridging loan, followed by up to 24 months on a serviced term basis.
The product also provides borrowers with the opportunity to capital raise at the point of switching.
Meanwhile, the Term 2 Rent product is aimed at borrowers who plan to acquire or refinance income-producing commercial or specialist residential assets (including MUFBs or HMOs) without tying borrowers into long-term lending contracts with large ERCs.
It offers a serviced proposition at up to 70% LTV net and a term of 24 months, with annual rates starting from 6% + BBR on a variable rate option, or 11.5% on a fixed-rate option.
Hope Capital expects the Term 2 Rent product to be highly sought-after, as serviceability only needs to cover 100% pay rate rather than ICR specific calculations.
Both new products are available for UK, foreign nationals and ex-pat borrowers, for a variety of property types—including residential, commercial, semi-commercial, HMOs and MUFBs— in England, Wales and Scotland (postcode restrictions apply for Scotland).
In addition to no ICR calculations, both products feature no ERCs and no exit fees.
Roz Cawood, director of sales at Hope Capital (pictured above), said: “This is a really exciting space to enter and enhances our proposition even more in terms of affordability and flexibility.
“As we are very much aware, rising interest rates and the lack of secure options are becoming a real challenge for brokers and borrowers alike who are looking for a solution to overcome this.
“Taking on board the feedback from the market, Bridge 2 Let and Term 2 Rent have been designed to be flexible around the needs and circumstances of the individual borrower and their specific projects.
“Not only do we now provide an option where borrowers can access a fixed loan up to 12 months at a competitive rate, but we can also facilitate an additional 24 months if needed.
“The additional benefit of having no ERCs and exit fees means we feel very confident this will be instrumental in supporting a significant number of brokers and their clients.”
