The borrower can service the loan while having some of the interest retained and spread repayments on the serviced part over the entire term of the loan.
Hope said this means the monthly interest payments are significantly reduced for the borrower, potentially by over 90 per cent, while any combination of the number of months can be serviced or retained.
“By shaping the loan through the selection of the number of months to be retained and the number to be serviced, the borrower is empowered to achieve the balance between cash flow, affordability, optimal loan amount and loan to value,” the lender said.
“Additionally, by structuring the loan in this way the borrower can ensure that the monthly payments can reflect the repayments of any future remortgage they have planned to support their exit strategy, or to ensure that any rental income from the property can cover the repayment or interest cover ratio.
“Additionally, this may help provide a satisfactory credit profile for future refinancing,” it added.
Loan terms are available from three to 12 months.
Jonathan Sealey (pictured), chief executive officer of Hope Capital, said the move was about offering the flexibility to meet the needs of the borrower.
“We understand that individual circumstances – the borrower’s own financial position and the nature of the property they are investing in – will vary greatly from case to case,” he said.
“We make it our job to take all these different situations into account and do our utmost to lend in any scenario where the loan achieves the borrower’s aspirations, is affordable and enables a viable exit strategy.”