Hope brings out new development exit finance offering

Hope Capital has launched a new residential development exit finance product.

The offering enables borrowers who are in a position where their completed residential development is prepared for sale, to switch to a short-term, lower-cost funding option, giving them more time to sell their properties.

Clients can secure between £150,000 and £5m at up to 80% LTV, with rates starting from 0.69% on terms from three to 18 months.

Gary Bailey, managing director at Hope Capital (pictured above), said: “In the current economic climate, with the dual impact of Brexit and Covid-19, both new and experienced investors and developers are facing setbacks due to demand for building materials and labour

“Unfortunately, many borrowers find themselves in a position where their current loan is coming to an end, however they have not managed to complete the sale of their development on time. 

“Investors and developers tend to rely on bridging finance to fund a project — whether that involves covering the cost of building or renovating a property. 

“However, when the sale stalls and the deadline to pay back the loan is missed, this has a huge impact on the profitability of their development, if they are not in a position to tie up the loose ends of their existing finance obligations.

“We recognise this and have created a product which provides brokers and their clients with competitive, flexible and  favourable solutions to meet this need and best match their requirements.”

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