"The market for purchasing land is very competitive, which is why many borrowers find themselves in a situation where timescales are tight and they need to access funding quickly"
Up until now, Hope Capital has only provided a loan suitable for land where planning permission has already been granted. However, this new offering ties in with its existing product, providing an opportunity for borrowers who need funding quickly to secure a bridging loan on a plot of land without planning permission.
Land that requires a planning gain will initially be written on a different interest rate than land that already has planning, however once the planning has been granted the lower interest rate will be retrospectively applied for the whole of the original term of the loan.
Rates start from 0.75% up to 60% LTV on land with planning and 0.99% up to 50% LTV on land without planning.
Loans will be available on terms between 3 - 18 months with a minimum loan size of £150,000 and no exit fees
Hope Capital will also consider adverse credit alongside foreign nationals and expats.
Roz Cawood, director of sales at Hope Capital, commented: “The market for purchasing land is very competitive, which is why many borrowers find themselves in a situation where timescales are tight and they need to access funding quickly to secure the deal.
“At Hope Capital, we are committed to creating new opportunities, which will support brokers and borrowers. This is why we have developed a range of bridging loans for land, both for cases with and without planning permission. Our offering provides fast, reliable and flexible solutions for this purpose and can be used for purchasing the plot of land, gaining planning permission, achieving an uplift in value either for sale or to refinance for the development.
“It can be rare to find a finance option which accommodates land without planning cases, so we feel very confident this will be a huge success in the market and will be instrumental in propelling our bridging division into the next stage.”
