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Hope Capital considers term extensions and payment holidays

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  • 31/03/2020
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Hope Capital considers term extensions and payment holidays
Bridging lender Hope Capital has confirmed it will consider term extensions and payment holidays for its borrowers in the wake of the coronavirus crisis.

 

Given the shorter periods of loans, bridging borrowers could be significantly affected by government restrictions which have led to most construction work ending and property sales limited.

In a post on its website today, Hope Capital CEO Jonathan Sealey (pictured) said the lender recognised these were worrying times for many people and that it was committed to supporting clients as much as it possibly can.

The lender urged anyone who may have concerns to make contact as soon as possible.

Most bridging loans do not have monthly payments as all the interest is typically deducted from the initial advance, however Sealey highlighted that for borrowers who are making monthly repayments, a payment holiday may be considered as a solution, as part of the individual review.

 

‘Tailored outcome’

“In accordance with government policy Hope Capital will consider payment holidays, based on the individual circumstances of the customer,” Sealey said.

He continued: “We will consider each case on its individual merits and carry out a full assessment, ensuring we get the best tailored outcome for each customer. Proof of individual situations may be required.

“We wish to reassure our clients we will be doing all we can to ensure we achieve a fair outcome for them, based on their own individual situation,” he added.

A Hope Capital spokesman added that any and all options, including a term extension to avoid falling into default, would also be considered where appropriate.

The lender’s website shows it is still considering new business applications for between £100,000 and £5m at up to 75 per cent loan to value.

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