This is available at Hope Capital’s lowest rate, with pricing starting at 0.85%. The development exit loan is available on residential properties only. 

There is no minimum term for the product, which has been designed for completed projects. Hope Capital said this is expected to relieve financial pressure from a developer who needs to repay an existing loan from another lender while seeking a buyer for the project. 

Loan sizes range from £100,000 to £5m and terms go up to 18 months. The development exit product also allows for capital raising for business purposes. 

It features dual representation and offers flexible repayment options. There will also be a dedicated underwriter for each case and there are no exit fees. 

Hope Capital will also consider dual legal representation, a change it made across all its products earlier this year. 

Sponsored

Shawbrook is the specialist mortgage sector’s ‘best kept secret’ – Sard

Sponsored by Shawbrook Bank

Kim Parker (pictured), head of sales at Hope Capital, said: “Often, once a borrower has a project which has completed, there will be a limited amount of time to sell the property(s) and subsequently, pay back the loan.

“Our development exit finance option can therefore be used to raise capital quickly and provide the borrower with vital breathing space to sell the property, while [tying] up their existing finance obligations.” 

Kate Cowan, chief financial officer at Hope Capital, added: “We’ve worked with a significant number of brokers who have clients in need of this lifeline and predict there will be an influx of new borrowers in the same predicament in the near future.

“This is why we want our brokers to be reassured that we have ideal options for their clients to switch to a short-term, possibly lower-cost, funding option.” 

In May, the lender said it had made improvements to its service proposition to provide a smoother process for brokers and borrowers, which would result in faster turnaround times.