We can’t guarantee what’s around the corner, but we can guarantee one thing...

Article provided by Jonathan Sealey, CEO at Hope Capital for use in The Intermediary   

In the wake of raised rising interest rates from the Bank of England (BoE), many lenders are feeling the pressure and subsequently, putting their fixed rates out of reach and instead focusing on just providing variable rates. 

The latest increase has resulted in borrowing money becoming once again more expensive and a rapidly increasing number of borrowers finding themselves in a situation where they need to source a short-term funding solution. Since mortgage repayments have become more expensive in recent months – along with the cost-of-living crisis with rising prices for energy, food and other household outgoings, a bridging loan can help save a borrower a lot of money if they repay the loan as quickly as possible. 

With many lenders not knowing which way to turn, we see this as an opportunity to step in and provide much needed support to our brokers and borrowers.  Being a lender, we’re well aware of the uncertain times that are upon us and are more than happy to adapt our strategy to make sure we can provide support and affordable options throughout this period. 

In fact, I predict that over the coming months, even more lenders will stop providing securable options and instead shift their focus on how to keep afloat. This is why we fully understand how important our fixed rate option is. 

We launched our fixed option, the Hope Guarantee in September 2022, giving the opportunity as a borrower to lock in at a great rate and protect themselves against even further rate increases. In addition, reacting to interest rates hitting 4.25% in March, we also announced a few weeks back that we will keep our rates fixed on all deals over £500,000 until at least the end of April, to provide even further security to borrowers.  

The interest we’ve received from this offering has been unrivalled, which is why we’ve made the decision to extend this guarantee until the end of May, providing even more time for borrowers to capitalise from cheaper rates on deals over £500,000. Ultimately, we want as many borrowers as possible to benefit from our competitive rates. 

We’re often asked why borrowers should opt for a fixed rate option over a variable one. As with anything, deciding what is the most suitable, solely depends on the deal and the outcome the borrower is looking for.  However, there are many advantages to having a fixed rate, including: 

Protection: Certainty is not only important to the lender, but just as important for borrowers, if not more so. For most investors and developers, borrowing money is a means to an end. Borrowing at a fixed rate means one less thing to worry about and profit margins can be protected. 

Budgeting: A key advantage for a borrower is that once they have locked a rate in, they will know how much needs to be repaid over the course of their term. Therefore, as the amount of interest charged doesn’t alter throughout the length of the introductory rates period, their repayments will remain the same, even if interest rates suddenly spike. 

Capitalise on low interest rates: With it looking very likely that interest rates are only going to continue to rise, taking out a loan at the time when they are lower, means the borrower will be able to lock in a cheaper rate for a period of time, which could reduce the overall cost of their loan. 

Having the reassurance as a borrower that repayments will stay the same regardless of what rate increase is potentially looming around the corner, is an extremely attractive proposition.   

At Hope Capital, it’s our mission to make sure that brokers and borrowers can access the right products. We have created a range of secure, affordable and transparent products, meaning they can continue to borrower with confidence, which is just what’s needed at a time when living costs are being squeezed.  


To find out more about Hope Capital and their fixed rates option call 0151 523 5998 or email: newdeals@hope-capital.co.uk. 

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