Gary Bailey

Hope Capital extends bridging range to include borrowers with adverse credit

Hope Capital has enhanced its bridging product range to include borrowers who have had bankruptcies, individual voluntary arrangements (IVAs) or have an impaired credit history.

With this offering, the bridging lender will explore the reasons for the bad credit happening and how the issue has been overcome by the borrower.

The lender stated it would want to be sure the cycle of poor credit has been broken and will not continue into future borrowing.

As long as these assurances are received, Hope will accept borrowers with CCJs, a settled bankruptcy, IVA or company voluntary arrangement (CVA).

Hope will also review applications from those with outstanding or rolling arrears.

It will lend up to 75% LTV on residential assets to borrowers with less than £5,000 of CCJs that were settled at least 24 months ago.

Other LTVs will depend on the severity of the impaired credit and whether CCJs and arrears are current or settled.

A maximum LTV of 40% is in place for borrowers with outstanding mortgage arrears.

Borrowers with no bankruptcies, IVAs or CVAs, but with settled CCJs of less than £5,000 will be able to access semi-commercial loans up to 70% LTV.

Meanwhile, borrowers with rolling arrears will only be able to access semi-commercial loans up to 40% LTV.

Gary Bailey, managing director at Hope Capital (pictured above), said: “We have always looked at every application on its own merits and weighed up each loan individually.

“Some of the applications we have received in the past have been from people who might have a somewhat tarnished credit history, but who have a very strong business case and a clear exit route.”

Hope will not use credit scoring and each application will be underwritten based on a clear and feasible exit strategy.

Gary added: “At low LTVs, it makes perfect sense to grant a short-term loan when the case warrants it, with the condition that each loan is paid back with the sale of the property.

“This is particularly the case when someone has had credit problems in the past, but these are now resolved, as long as we understand the reasons for this, and we are confident this is not ongoing.

“We have introduced this extended range of bridging loans in order to make bridging available to a whole new segment of the market.”

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