New loan backs urban conversions as demand for mixed-use housing grows
Bridging lender Hope Capital has introduced a new loan product aimed at property developers converting commercial buildings into residential or mixed-use spaces.
The offering comes with updated pricing and terms that reflect a more competitive stance in the current market.
The loan allows up to 70% loan-to-value (LTV) for full commercial-to-residential conversions, at a flat rate of 0.92% per month — down from the lender’s previous commercial rate starting at 1.09%. For projects converting commercial assets to semi-commercial use, the product offers 65% LTV at a 0.95% rate.
Other key features include loans from £100,000 to £5 million, up to 100% build cost financing, no exit fees, and various payment structures such as deducted, fully serviced, and flexi options. Terms range from three to 18 months. Up to 100% of the purchase price is available when backed by additional security, either as a first or second charge. The application process includes electronic KYC and AML checks and direct access to a decision maker. Dual legal representation is permitted on loans up to £750,000.
The loan targets refurbishment projects across light, medium, and heavy scales and is particularly aimed at developments in key urban locations where repurposing existing commercial sites may offer savings over new builds.
“Our latest commercial loan supports our ESG strategy by backing developers committed to sustainable practices,” said Kim Parker (pictured), head of sales at Hope Capital. “It also positions them strongly in a market where demand for affordable housing and mixed-use spaces continues to grow.
“On top of that, this type of investment offers key advantages, such as higher rental yields, alignment with market needs, and obtaining a smoother approval processes for construction works. Ultimately, this exclusive product provides a fantastic opportunity for our borrowers to capitalise on a higher LTV and rates which are significantly cheaper compared to standard commercial offerings in the market.”
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