In response to the Bank of England’s decision yesterday to raise interest rates once again, specialist short-term lender Hope Capital has announced that it will maintain fixed rates on all loan deals over £500,000 until at least the end of April 2023.
The move comes as part of the company’s fixed rate scheme, the Hope Guarantee, which was introduced in September 2022 to offer brokers and clients stability and security amidst the uncertain economic climate.
The Hope Guarantee ensures that borrowers’ rates are fixed for the term of their loan once Hope Capital’s solicitors have been instructed, provided there are no material changes to the application or loan.
By continuing to roll out its fixed rate scheme, brokers and borrowers alike will be able to borrow with confidence, regardless of what is happening in the market.
Jonathan Sealey (pictured), CEO at Hope Capital, said: “With many lenders continuing the trend of withdrawing fixed rate deals from market with little or no notice and introducing higher rates instead, we have decided to counter this by continuing to roll out our fixed rate scheme, the Hope Guarantee.
“Following the latest rate rise, I predict that even more lenders will focus on variable rates and pull their products from the market.
“Therefore, we hope our decision will provide reassurance and support borrowers who are looking for a solution to overcome this.”
Hope Capital provide bridging loans across residential, semi-commercial, commercial and land deals, with rates starting from 0.72% and can lend up to 75% LTV.
Earlier this year, Hope Capital announced it had launched two brand-new products: Bridge 2 Let, which offers individuals and companies a bridging loan initially for up to 12 months followed by up to 24 months on a serviced term basis, and Term 2 Rent, a product that targets borrowers who are looking for a fixed term solution up to 24 months without the need for ICR calculations.
Sealey continued: “This is no doubt a challenging time, but having the opportunity as a borrower to lock in at a great rate now and protect themselves against even further rate increases, we feel is pivotal, especially with the competitive options we provide.”
