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 a wholly flexible loan.
Jonathan Sealey, chief executive officer of Hope Capital, commented, “Our Hope FleXi bridging loan is all about offering the flexibility to meet the needs of the borrower. As part of the Custom Collection it gives added benefit to the borrower as they can mix and match it with other features to create a tailored loan.
“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.”