Hope Capital has made changes to its Hope Seven 5 bridging product.
For the first time, the Hope Seven 5 now offers a seven-month term, extended from six months, as well as a 12-month term.
The bridging lender says its change provides borrowers with an ideal solution when they need to have owned the property for a minimum of six months before they can put a longer-term mortgage in place.
The Hope Seven 5 is also now available for a range of different purposes including: refinance, capital raising, debt relief and many other business purposes, in addition to transactions where there is a purchase involved.
There are no upfront solicitors’ undertakings as these are taken from the loan on completion.
The Hope Seven 5 loan is available at a rate of 0.75% per month, up to 75% LTV on non-regulated residential property up to £750,000. It is available throughout England and Wales on a first-charge basis, for loan periods from three to 12 months.
The loan is available to individuals, companies and other legal entities.
Previously the loan was for property purchase only, but Hope Capital claims that it has been so popular it has now been made available for a range of other purposes. For instance, it can be used for a variety of light refurbishment works as well as for purchases at auction, to chain-break a mortgage, capital raising for almost any purpose, or re-financing.
There are two term options on the product: either 3–7 months (extended from 6 months) or for borrowers who need a longer term, Hope Capital can offer up to 12 months. The extension of the six-month term to seven months has been designed in response to broker feedback, to give the borrower time to put longer-term finance in place.
The extra month ensures the client can meet the six months minimum ownership criteria, providing them with enough time to enable a remortgage, rather than extending or having to re-bridge the loan.
The Hope Seven 5 is available on residential (non-regulated) property, HMOs, holiday lets and for portfolios of up to three properties.
Gary Bailey (pictured), managing director of Hope Capital, said: “The Hope Seven 5 bridging loan has struck a chord with a lot of brokers and their clients and has been recognised as a popular bridging loan ever since we introduced it at the end of September last year.
“We listened to our broker partners and the needs of their clients, so extending the term from six to seven months helps to makes it an ideal solution for a wider number of borrowers. This will save the borrower any potential extension fees or other refinancing costs before they can get the mortgage in place.
“The fact that it can be used as chain-break finance as well as for light refurbishment projects has contributed to its popularity. Therefore, it made sense to broaden its use out to those who may need it for refinance deals or capital raising as well as for purchases.
“Of course, all borrowers still benefit from Hope Capital’s excellent turnaround times, individual service and direct access to underwriters.”
