Hope Capital, a specialist short-term lender, has introduced a new bridging loan designed specifically for those looking to buy residential properties at auction.
The launch comes amid a surge in UK property auction activity. The lender is offering reduced rates on this new product, starting at just 0.89% per month, which is up to 0.06% lower compared to its standard bridging loan offering.
The new loan has several attractive features. Borrowers can benefit from free valuations, with a potential saving of up to £2,500.
The loan offers up to 75% loan to value and is suitable for purchase only, including self-funded light refurbishment works.
There is no requirement for an upfront legal undertaking with dual representation. The product is available across England, Wales and Scotland and accommodates loans ranging from £200,000 to £2m with terms available between three and 18 months.
Jonathan Sealey, CEO at Hope Capital, said: “We’ve worked with many brokers and borrowers on auction deals over the years, however we’ve never actually offered a specific auction finance product.
“Owing to the growing demand for this type of loan and conversations we’ve had with brokers, it felt like the right time to launch a solution which is specifically tailored to auction purchases,” he said.
Sealey continued: “To have an option where there is no valuation cost to worry about, up to 75% LTV and some of the most competitive rates in the market, is an extremely attractive proposition and we hope will be instrumental in ensuring borrowers can continue with their investment opportunities, regardless of the disruption in the market currently.”
He also emphasised the speed advantage, stating: “The main attraction of purchasing a property at auction using a bridging loan is the speed it can offer. With the majority of bidders against a 28-day timeframe, we have an extremely efficient team and smooth onboarding process to ensure our borrowers can raise their paddle with confidence.”
This introduction of auction-focused finance comes just a week after Hope Capital announced a revamp of its broader product range.
