The product is aimed at borrowers whose development is completed and prepared for sale, who want additional time to relieve pressure around paying back the outstanding capital to their development finance lender if they are unable to do so currently.
Rates start at 0.69 per cent for the development exit product, with loans available up to a maximum of 80 per cent loan-to-value (LTV), with maximum loan sizes of £5m. The product is available across terms ranging from three to 18 months.
Gary Bailey (pictured), managing director of Hope Capital, noted that the dual impact of Brexit and Covid-19 meant that developers of all experience levels were facing delays and setbacks. As a result many find themselves in a position where their current loan is coming to an end, but they haven’t yet managed to sell their development.
He continued: “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.”
The development exit launch follows Hope Capital’s release of a ‘fast-track’ bridging loan earlier this summer, as well as the appointment of a new operations manager this month.