Hope Capital introduces a new ‘clean credit’ loan designed for UK borrowers with robust credit histories, offering reduced interest rates for enhanced market momentum.
- Borrowers with excellent credit histories can benefit from reduced rates, now as low as 0.89% for a 70% loan-to-value (LTV) and 0.91% for a 75% LTV.
- The loan is aimed at residential projects up to £750,000 and requires compliance with automated valuation model (AVM) criteria and title insurance.
- Eligibility is strict, demanding no recent credit issues such as County Court Judgements (CCJs) or bankruptcies in the last two years.
- Hope Capital’s initiative follows a cut in UK interest rates, aiming to support the demand for residential investment.
Hope Capital has launched a new ‘clean credit’ loan, offering reduced interest rates to borrowers who boast good or excellent credit scores. This strategic move is designed to stimulate the market by providing attractive financing options that encourage investment in residential properties. Specifically, the lender has introduced rate reductions within its residential loan offerings. Eligible borrowers can access interest rates of 0.89% for loans with 70% loan-to-value (LTV) and 0.91% for those at 75% LTV. This represents a decrease of up to 0.05% from existing rates.
The loan targets residential projects valued up to £750,000. However, it mandates adherence to specific lending criteria, notably that all loans must fit within the lender’s automated valuation model (AVM) and desktop valuation parameters. Additionally, borrowers are required to secure title insurance, ensuring a safeguarded lending process.
Applicant eligibility is stringent, reflecting Hope Capital’s focus on minimising risk while offering competitive rates. Borrowers must reside in the UK, possess at least one additional UK asset, and have maintained a stellar credit history over the past two years. This includes a spotless record without County Court Judgements (CCJs), missed mortgage payments, bankruptcies, Individual Voluntary Arrangements (IVAs), or rolling arrears.
Kim Parker, head of sales at Hope Capital, commented on the launch, stating that the initiative seeks to “inject a little more momentum into the market”. The company’s goal is to create opportunities for borrowers with clean credit to benefit from favourable rates supplemented by high LTV offerings. These options are versatile and cater to various borrower requirements and circumstances.
The introduction of this loan follows the Bank of England’s decision to lower interest rates. Hope Capital’s response aims to meet the demand for residential investment opportunities by making financially attractive options available to qualified borrowers. This anticipatory move is expected to be highly sought after, reflecting the lender’s confidence in addressing market needs.
Hope Capital’s new loan product seeks to offer competitive rates for borrowers with solid credit, supporting market demand while ensuring low risk.
