Hope Capital has seen new cases for loans in excess of £1 million increase by 350% month-on-month in July.
The latest figures from Hope Capital follow a year-on year increase in cases of 189% recorded by the specialist short-term lender in June.
The recent surge in interest for larger loans provides further evidence of renewed investor confidence, and increasing broker awareness that, with its flexible approach to lending, Hope Capital should be at the top of their list for cases of all shapes and sizes.
Continuing the trend from June’s figures, well over half (60%) of new cases in July were for residential properties, a quarter (25%) for commercial, and the remaining 15% for mixed-use. The average LTV of the loans, weighted by value, is under 60%.
A large proportion of the loans (85%) are aimed at refinancing and capital-raising, indicating that businesses are looking to restructure their finances in the wake of the coronavirus lockdown.
The government has recently announced changes to permitted development rights and planning guidance, including proposals to make it easier to convert commercial properties to residential use. These changes provide investors with new opportunities to meet changing patterns of demand in a post-coronavirus world.
Gary Bailey, managing director of Hope Capital, said: “It’s clear that there is strong demand from borrowers as the country gradually emerges from lockdown.
“There is a widespread expectation that in the post-coronavirus world, the property market will take on a very different shape. There is likely to be less demand for expensive city-centre office space, for example, and greater need for residential properties to incorporate outdoor space and areas for working comfortably and efficiently from home.
“Change brings fresh opportunities for investors, and recent planning changes mean it is easier for them to move quickly to take advantage of these. What they need is a lender who can also move quickly so that they can get their projects underway with the minimum of delay.
“Hope Capital’s flexible approach means we will always go the extra mile to understand individual projects and borrowers’ unique circumstances.
“It’s important that brokers know there are lenders such as Hope Capital that are ready to deal with cases at all levels, and go the extra mile to get finance in place quickly.”