Hope Capital Property Finance has broadened its bridging loan criteria, making it easier for borrowers to access funds. This expansion is significant for landlords, investors, and brokers as it enhances flexibility and affordability in the current mortgage market.
What are the new criteria changes?
The lender has introduced several key changes to its bridging loan offerings. Notably, it has increased the lending limit on below-market-value transactions to 75% of the open market value, contingent on a full valuation. Additionally, the instant valuation threshold has been raised from £500,000 to £1 million for qualifying residential cases, which is expected to expedite completion times.
How do these changes affect borrowers?
With the reduction of the minimum loan size from £100,000 to £50,000, more borrowers can now access bridging finance, especially those looking to invest in smaller properties or undertake refurbishment projects. The enhanced offerings include loans ranging from £50,000 to £5 million across England, Wales, and Scotland, with terms available from three to 18 months.
What does this mean for brokers?
Brokers can now offer a more competitive range of products to their clients, particularly in the specialist property market. The dual legal representation threshold has also increased from £750,000 to £1 million, allowing brokers to facilitate larger transactions without the need for separate legal representation, thereby simplifying the process.
What this means for the mortgage market
The adjustments made by Hope Capital reflect an ongoing trend in the mortgage market towards greater accessibility and flexibility. By catering to a broader spectrum of borrowers and reducing costs associated with bridging loans, lenders are positioning themselves to meet the evolving needs of the property market. This could lead to increased activity in the sector as more investors and landlords take advantage of these favourable conditions.
Frequently asked questions
What types of properties can benefit from these new criteria?
Residential properties, including those requiring light, medium, or heavy refurbishment, are eligible under the new criteria.
How can I apply for a bridging loan with Hope Capital?
Interested borrowers should contact a broker or directly reach out to Hope Capital to discuss their specific needs and the application process.