A Merseyside-based bridging lender has announced that it will offer its highest ever procuration fee – 1.5 per cent - to all brokers on bridging cases completed before the end of May 2013.
 
Hope Capital, which has been trading in the industry for 20 months, took the decision to increase its procuration fee from 1 per cent to 1.5 per cent in order to grow its relationships with brokers. 

Jonathan Sealey, CEO of Hope Capital, told B&C: “We have never actively highlighted our procuration fee structure before, but we would like to work with more brokers and intermediaries on their current cases, and as principal lenders we have the ability to offer competitive procuration fees to those who have the access to bridging cases in the market.

“We have also listened to our current brokers and I’m sure that the new procuration fee will highlight that we are able and willing, especially as a principal lender using private funds, to offer brokers incentivising rates.”

Jonathan also mentioned how, “the first quarter of 2013 has been very strong for Hope Capital in terms of loans completed and redeemed. In terms of funds deployed in bridging loans by end of Q1 2013, we are currently 100 per cent up on this time last year. This further highlights our appetite to lend.

“We are able to break away from a rigid model of lending criteria many bridging finance companies have in place. We look to be as flexible and as entrepreneurial as possible for borrowers who require short term, property-backed finance.”
Jonathan, with an RICS chartered surveyor background in planning and development, mentioned to B&C that he meets all borrowers in person and on site, which not only helps build a relationship with the customer but also means that he is able to see, for example, the viability and end value of a particular project.

Jonathan added: “It’s a challenging market and there are a lot of lenders active within the bridging space, but I would like to think we stand out.”

Hope Capital funds deals up to £500,000 (potentially more in London), with a term of up to six months. The lender’s average loan size to date is £275,000.

Last week, Hope Capital became the latest lender to have joined the Association of Short Term Lenders (astl), bringing the number of full astl numbers to 23.