Short-term lender, Hope Capital, has introduced a new product to allow borrowers to complete their residential development.
The Finish & Exit bridging loan product provides up to 75% LTV, with rates starting from 0.70% per month and is suitable for projects where the development has still not been finished perhaps owing to a project overrun or material supply issues being encountered.
The minimum loan amount on the Finish & Exit bridging loan product is £70,000 and goes up to a maximum of £5m, which is available on residential property developments located in England and Wales. Loan terms are from 3 to 18 months.
The new product enables borrowers to undertake light to heavy refurbishment projects, with drawdowns being available. Alternatively, it can be used to repay existing finances and complete any outstanding works.
Roz Cawood (pictured), director of sales at Hope Capital, said: “The Finish & Exit bridging loan says what it does on the tin: finishing up projects before exit.
“We decided to launch this product after noticing there were a significant number of investors and developers who required funds to finish a development to pay off their existing development loan.
“The Finish & Exit bridging loan provides the borrower with much needed additional breathing space and relives any pressure to pay outstanding capital back to the lender if they are unable to do so on time.”