Hope Capital has become the first bridging lender to offer a fixed fee loan.
The fixed fee loan is available up to 75% LTV and for a term of between one month and six months, while the actual fee will be agreed on a case by case basis.
With no complicated interest calculations or hidden fees, the fixed fee loan is thought to be the most straightforward bridging loan in the market, as borrowers agree on the fixed fee at the outset and simply pay when the loan redeems.
As no interest is taken from the gross loan at the outset, the borrower is able to release more money from day one. This makes it ideal for investors who have bought a property below market value and are looking for a quick turnaround.
Because Hope Capital is a principal lender, it is able to go outside of the box when it comes to product offerings.
This pioneering new product has been created to enable borrowers to calculate exactly what it is going to cost them to make their profit as Brian Baker, pictured, head of operations explains:
“We are continually looking to offer new products that are innovative, exciting and market leading.
“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.”
Dan Condliff, a broker from Revellis says the new fixed fee loan is “an excellent ‘gap-filling’ product”, adding:
“In this sector, a product of this kind is very much in demand. This facility will enable our clients to cement short term opportunities with an improved return. An excellent disrupter in the short term finance marketplace from a trusted brand.”