Interest is set at a lower rate for the first six months, resulting in lower monthly repayments for the customer, making the loan as affordable as possible.
Initial rates start at 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.
“We’ve listened to our brokers and borrowers and understood their need for a new, flexible, affordable and accessible product,” said Jonathan Sealey, CEO at Hope Capital (pictured above).
“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.”
How does the discounted rate product work?
For example, a borrower purchasing a residential property requiring 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, the borrower can afford the increase in monthly repayments.
Monthly payments can also reflect the repayments of any future remortgage, which may help build and provide a satisfactory credit profile, when implementing their exit strategy.
Earlier this week, Hope Capital announced further details about its new mini, midi and maxi loans, such as now being able to offer finance from £50,000 — it’s smallest loan size to date.
The mini loan goes up to £150,000, while the midi and maxi offerings are offered up to £500,000 and above, respectively.
The discounted rate products and the mini, midi and maxi offering are part of the lender’s custom bridging loan range – announced last week — which comprises six different products, features and options.