Hope Capital has launched a new style of bridging loan with flexible repayment features.

The Hope Flexi loan allows borrowers to choose how much of the interest they would like to roll-up and added to the loan amount upfront as so-called “retained interest” and how much they would like to cover in monthly repayments as “serviced interest”.

Loans are offered for a term of between three and 12 months.

If the borrower wants a loan term of one year, for example, they can pay six months’ interest upfront as the “retained interest” added to their loan and spread the remaining six months’ interest over the 12 monthly repayments.

Alternatively, they could opt to make a retained interest payment of five months’ interest and split the remaining seven months’ payments over the course of a year.

Borrowers can choose any split between the number of months’ repayments that are made on a retained and the number that are on a serviced basis.

Rates start from 0.69 per cent if all the interest is paid upfront or 0.74 per cent if some of the interest is spread out as serviced repayments.

Hope Capital chief executive Jonathan Sealey says: “The introduction of our Hope Flexi bridging loan is all about offering the flexibility to meet the needs of the borrower.

“We understand that individual circumstances – the borrower’s own financial position and the nature of the property they are investing in – will vary greatly from case to case.

“At Hope Capital, we make it our job to take all these different situations into account and do our utmost to lend in any scenario where the loan achieves the borrower’s aspirations, is affordable and enables a viable exit strategy.”