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Hope Capital records 350% spike in £1m-plus cases

Jessica Bird

August 4, 2020

Gary Bailey Hope Capital loans

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 (pictured), 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.

“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.

“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.”


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