Hope Capital has launched a new product to provide borrowers with control and flexibility of their cashflow.
The discounted rate loan is designed to help borrowers achieve the balance between affordability, optimal loan amount on day one, cashflow and LTV. Interest is set at a lower rate for the first six months, resulting in lower monthly repayments for the customer.
Initial rates start from 0.54% per month. The discounted rate is available on serviced or part-serviced loans and has a minimum 12-month term, with six months being at the lower discounted rate and the remainder at the non-discounted rate.
For example, a borrower purchasing a residential property requiring some light refurbishment prior to being rented out, would benefit from low monthly repayments during the period of receiving no rental income. Once the property is tenanted and income coming in, the borrower can afford the increase in monthly repayments. In addition, monthly payments can reflect the repayments of any future remortgage, which may help build and provide a satisfactory credit profile, when implementing their exit strategy.
This new product is part of the Hope Capital Custom Collection which comprises six different products, features and options, all of which are designed to give the most suitable solution for the borrower.
Jonathan Sealey (pictured), CEO of Hope Capital, said: “We’ve listened to our brokers and borrowers and understood their need for a new, flexible, affordable and accessible product. We’re excited to be launching the Discounted Rate product which helps us meet the needs of our customers.
“Naturally, the Hope Capital team works closely with brokers and borrowers to create a loan that best suits the borrowers needs and circumstances, being flexible and transparent throughout the process.”