Hope Capital has reduced the starting rate on its Discounted Rate Loan product from 0.54% to 0.39%, the lowest the lender has offered.

The mortgage offers a discounted rate for the first three, four of six months of the loan term, with a higher rate being applied for the remaining time. It has been designed for properties that will not produce an income from the start.

It can be used for mixed-use or commercial product as well as residential property and the loan amounts on offer range from £150,000 to £2.5m.

The lender has also cut the rate on its Capital Collection product from 0.79% and its Seventies Collection from 0.725% to 0.70% each.

Other rate cuts include light refurbishment loans now being set at 0.80% and medium and heavy refurbishment loans at 0.82%.

Hope Capital chief executive Johnathan Sealey says: “The first half of 2021 has undoubtedly been a very busy time in the specialist lending market and we feel very confident that the demand for bridging finance will remain incredibly strong.”

“As part of our growth plans, we’ve recruited more great talent, with BDMs now covering all parts of the country.

“As a result, we felt it was the right time to review our pricing model and reduce our rates, which we feel confident will be a hit in the market. We are committed to supporting brokers and ensuring they always have a number of competitive options available to help them meeting their clients’ bespoke needs.”