A specialist lender has launched a new loan designed to make it cheaper and easier for property developers to renovate and sell properties for a profit.

Hope Capital’s new “flip loan” allows borrowers to access up to 75% of a property’s value with an interest rate of 0.99%. The loan is split into two parts:

• Bridge Loan: This initial loan lasts for 12 months and allows borrowers to purchase a property and begin renovations.
• Refurbishment Loan: Borrowers can then transition to an 18-month refurbishment loan to complete the renovations.

This structure offers borrowers several benefits, including:

• Lower Costs: Borrowers can save money by avoiding certain fees associated with taking out a second loan.
• Flexibility: The 18-month term provides ample time to complete renovations.
• Speed and Convenience: Transitioning from the bridge to refurbishment loan is streamlined, eliminating the need to start a new application from scratch.

The loan is available for residential, semi-commercial, and commercial properties. It also offers flexible payment options and reduced title insurance fees.

Kim Parker, head of sales at Hope Capital, said: “Our latest loan flips everything brokers and borrowers know about our offering on its head.”

She continued: “Firstly, not only can we now provide a significantly longer loan term, but it removes the requirement of having to pay certain fees again. This not only provides a greater level of affordability to the borrower, but it also means they have more time and flexibility to capitalise from their loan.”

The new loan is expected to be popular with both existing Hope Capital customers and new borrowers looking to enter the property flipping market.