Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Hope Capital sees 350% rise in £1m-plus cases

Capital rise

Around 85% of the loans involve refinancing, which indicates that businesses are looking to restructure their finances

Hope Capital has seen new cases for loans in excess of £1m increase by 350% month-on-month in July.

This follows a year-on year increase in cases of 189% recorded by the specialist short-term lender in June.

Three-fifths (60%) of new cases in July were for residential properties, a quarter (25%) for commercial, and the remaining 15% for mixed-use.

The average loan-to-value (LTV) weighted by value, is under 60%.

85% of the loans were aimed at refinancing and capital-raising, indicating that businesses are looking to restructure their finances in the wake of the coronavirus lockdown.

Gary Bailey, managing director of Hope Capital, said: It’s clear that there is strong demand from borrowers as the country gradually emerges from lockdown. There is a widespread expectation that in the post-coronavirus world, the property market will take on a very different shape.

He said, there is likely to be less demand for expensive city-centre office space, for example, and greater need for residential properties to incorporate outdoor space and areas for working comfortably and efficiently from home.

Change brings fresh opportunities for investors, and recent planning changes mean it is easier for them to move quickly to take advantage of these. What they need is a lender who can also move quickly so that they can get their projects underway with the minimum of delay.

Bailey said, Hope Capital’s flexible approach means we will always go the extra mile to understand individual projects and borrowers’ unique circumstances. It’s important that brokers know there are lenders such as Hope Capital that are ready to deal with cases at all levels, and go the extra mile to get finance in place quickly.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.