Hope Capital records huge June spike in enquiries
Hope Capital has recorded a stronger June performance than for the same month last year, fuelling growing optimism that the market is bouncing back strongly from the coronavirus-inspired freeze.
Although many restrictions remained in place, Hope Capital received a huge 189% leap in enquiries from the previous June’s figures. This includes an increase in enquiries from brokers the firm has not previously worked with. The number of formal loan offers also increased by 20% compared to June 2019.
At the same time, Hope Capital has delivered even faster response times, with application and underwriting three times faster than in the first quarter of 2020. Over the first six months of 2020, the firm has seen a 14% increase in loans accepted by underwriting and a 31% increase in loans accepted by clients.
This strong demand coincides with the introduction of a new range of products, aimed at giving borrowers maximum flexibility and control. Launched at the end of May, the Hope Capital Custom Collection provides borrowers with an array of products and features designed to help them manage cashflow and optimise their day-one loan amount.
Nearly 90% of the new enquiries Hope Capital received in June were for residential property, up from just 50% the previous year. This reflects the strong residential offering of the Custom Collection, with the Hope Mini, Midi and Maxi loans all aimed specifically at residential investors. Nearly half of these were for loans of less than £150,000 – a market specifically catered for by the new Hope Mini product, starting at just £50,000.
While 25% of residential enquiries came from the North-West of England, nearly one-third (31%) of were from borrowers in the South-East of England – the highest proportion for any region – reflecting Hope Capital’s nationwide reach.
In addition to its all-new residential products, the Hope Capital Custom Collection also includes options for a built-in three-month repayment holiday for serviced or part-serviced loans, the ability to choose how much of the loan is serviced or retained, and a discounted rate for the first six months. Borrowers can also choose to reduce the upfront fees they pay, and to use alternative valuation methods where speed is of the essence.
Jonathan Sealey, CEO of Hope Capital, commented: “These figures are evidence that demand for short-term finance is strong, and growing. With lockdown easing, there is a pent-up demand for borrowing as projects that were put on hold in spring are put back in motion.
“The strong demand we have seen also reflects the range of products we have made available to meet borrowers’ diverse needs in the post-lockdown world. Our new Hope Capital Custom Collection gives borrowers all the flexibility they need to cope with the new circumstances in which they find themselves as a result of Covid-19.
“Hope Capital is putting borrowers and brokers in control. Combined with our well-earned reputation for fast, flexible service, this should make Hope Capital their first port of call when looking for short-term finance.”