Bridging lender Hope Capital today launches a flexible new bridging loan which is tailored to suit the affordability of the client.
Called the Hope FleXi, it introduces a new level of flexibility to the market. The key with this new product is that a borrower can not only service the loan whilst having some of the interest retained, but also spread repayments on the serviced part over the entire term of the loan. This means that the monthly interest payments are significantly reduced for the borrower, potentially by over 90%.
Another special feature of the Hope FleXi is that it allows any combination of the number of months that can be serviced or retained, providing the ultimate flexibility for the borrower in ensuring the payments are affordable. By shaping the loan through the selection of the number of months to be retained and the number to be serviced, the borrower is empowered to achieve the balance between cash flow, affordability, optimal loan amount and Loan To Value.
Additionally, by structuring the loan in this way the borrower can ensure that the monthly payments can reflect the repayments of any future remortgage they have planned to support their exit strategy, or to ensure that any rental income from the property can cover the repayment or interest cover ratio. Additionally, this may help provide a satisfactory credit profile for future refinancing.
The Hope FleXi for residential properties has been designed to help borrowers to achieve their ambitions, to optimise income-generating property, cashflow and capital requirements. This means that the level of payments and the amount required on day one is effectively tailored to each individual borrower’s circumstances.
For example, loan terms can be from three to 12 months, so if the borrower has selected a 12-month term, they could choose to retain six months’ interest, and make six months’ payments spread over the whole 12 months. Alternatively, they could opt to retain five months’ interest and make seven months’ worth of payments, again spread over the whole 12 months – ultimately any combination can be selected, to benefit the borrower, creating the ultimate in flexible borrowing.
Jonathan Sealey, chief executive officer of Hope Capital, commented, “The introduction of our Hope FleXi bridging loan is all about offering the flexibility to meet the needs of the borrower.
“We understand that individual circumstances – the borrower’s own financial position and the nature of the property they are investing in – will vary greatly from case to case.
“At Hope Capital, we make it our job to take all these different situations into account and do our utmost to lend in any scenario where the loan achieves the borrower’s aspirations, is affordable and enables a viable exit strategy.”
“As with all our bridging loans, our team provides service excellence at every stage from initial enquiry through to completion.”