Hope Capital has extended its lending to borrowers who have filed for bankruptcy, Individual Voluntary Agreements (IVAs) or who have an impaired credit history.

The bridging lender has taken the decision to enhance and extend its product range to meet the needs of applicants with an impaired credit history. It will require there to be a solid exit route to pay the loan back on or before the due date and each loan of this type will need to be repaid with the sale of the property lent against.

The lender has identified a gap in the marketplace and is offering these loans to meet that need. However, the firm has said it will explore the reasons for applicants’ poor credit and how it has been overcome.

As long as these assurances are received, Hope Capital will accept borrowers with CCJs, a settled bankruptcy, IVA or Company Voluntary Arrangement. It will also review applications from potential borrowers with outstanding or ‘rolling’ arrears.

Commenting on the announcement, Hope Capital managing director Gary Bailey said: “e have always looked at every application on its own merits and weighed up each loan individually. Some of the applications we have received in the past have been from people who might have a somewhat tarnished credit history but who have a very strong business case and a clear exit route.

“At low LTVs it makes perfect sense to grant a short-term loan when the case warrants it, with the condition that each loan is paid back with the sale of the property. This is particularly the case when someone has had credit problems in the past, but these are now resolved, as long as we understand the reasons for this and we are confident this is not ongoing.

“We have introduced this extended range of bridging loans in order to make bridging available to a whole new segment of the market.”

For residential purchase, rates will start from 0.69 per cent per month. Hope Capital will lend up to a maximum of 75 per cent LTV, including to borrowers with under £5,000 of CCJs that have been settled at least 24 months ago.

Other LTVs will vary according to severity of impaired credit and whether any CCJs and arrears are current or settled. For borrowers with outstanding mortgage arrears, the maximum LTV will be 40 per cent.

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