Bridging lender Hope Capital has begun offering a fixed fee loan
The new loan is available up to 75 per cent LTV and for a term of between one month and six months. Hope Capital says the loan fee will be agreed on a case by case basis.
Borrowers agree on the fixed fee at the outset and pay when the loan redeems.
The specialist provider says that because no interest is taken from the gross loan at the outset, the borrower is able to release more money from day one making it ideal for investors looking for a quick turnaround on properties they have bought below market value.
This new product has been created to enable borrowers to calculate exactly what it is going to cost them to make their profit as
Hope Capital head of operations Brian Baker, says: “With the fixed fee loan we have taken a standard product and turned it around to create a simpler and more transparent bridging loan, which allows property investors to quickly and easily calculate their profit potential on any deal.
“We believe we are the only bridging lender to be offering such a facility. It is something the market has long needed and we think it will prove very popular.”