The short-term lender said the change would support borrowers from acquisition through to refurbishment under one lending relationship and access to the same underwriter.
The product combines bridging and refurbishment by linking both stages into one structured facility.
Borrowers can purchase residential, semi-commercial or commercial properties with an initial bridging loan on terms up to 12 months, with the ability to transition to a refurbishment loan on terms of up to 18 months, without refinancing or having to reapply with another lender.
Hope Capital Property Finance said this addressed the common challenge in development finance, where capital is needed partway through a project.
Rates start at 0.8% up to 75% loan to value (LTV) and there is no minimum term, as this is waived when the product is flipped.
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The product has a £1,250 single admin fee, including legals for the flip transaction, and a second facility fee applies only to any loan increase on Flip+.
There is no automatic LTV reduction based on the structure alone, and underwriting is based on the gross to development value (GDV) and the terms of the deal.
Up to 100% of the build is cost funded and refurbishment finance is usually released on the same day.
Laura Carr, director of underwriting, compliance and stakeholder relations at Hope Capital Property Finance, said: “We anticipate there being a huge demand for this product and we’re looking forward to offering this to both our existing clients, as well as borrowers who are looking to access an initial loan, with plans to then undertake refurbishment works in the future.”
“By switching onto a new loan with us, clients won’t need to restart the application process from scratch, as the Flip+ case will be reallocated back to the original underwriter, creating a far more streamlined and significantly faster experience than moving to another lender.”
Jemma Wood, director of portfolio, asset and risk at Hope Capital Property Finance, added: “The loan support and relations team are on hand to assist our borrowers throughout their varying agreements. These specialists are ideally placed to support the transition from an initial bridging loan onto refurbishment requirements through our Flip+ product.
“Our Flip+ loan product offers many benefits to our borrowers, including removing the requirement of having to pay certain fees again. This not only provides a greater level of affordability to the borrower, but it also means they have more time and flexibility to capitalise on their loan.”
Aspen adds to bridge to let deal
Aspen has added to its bridge to let offering with a five-year semi-commercial product at 75% loan to value (LTV).
Rates start at a fixed 0.79% per month on terms up to 24 months, followed by 6.94% per annum over one, two or three years for the serviced period.
This is available on loans up to £15m net and borrowers can make use of the lender’s no-valuation process, no searches and dual representation.
Borrowing up to 80% LTV is available for refurbishment and development exit during the initial bridging phase.
The products are open to UK and foreign nationals, including expats with no credit footprint in the UK.
The loan is fully underwritten upfront and uses one facility letter and a single initial valuation for both elements.
Jack Coombs, chief operating officer at S&U PLC, parent company of Aspen, said: “A standalone semi-commercial product marks a natural progression of our bridge to let portfolio, and the leverage on offer will open up a whole new range of possibilities for investors and developers.
“We are excited to launch our new five-year bridge to let, and we are confident that the increased term and reduced rates will be welcomed by property investors, developers and their brokers.”
