Alternative Bridging Corporation has reported a more than 50% surge in development finance enquiries following last month’s overhaul of its proposition.
The specialist lender revamped its structure to provide a single, integrated facility covering construction through to final sale, replacing the need for separate development and exit loans.
The new product combines residential development finance and development exit funding into one streamlined facility, with pricing from Bank of England Base Rate plus 6.5% and lending up to 70% LTGDV.
Upon practical completion, loans automatically transition into a development exit facility, with the interest rate reducing by 1.5% per annum for the remainder of the term.
The lender says brokers have welcomed the added clarity, flexibility and removal of mid-project refinance risk in a market where funding certainty and exit optionality remain key.
JOINED-UP SOLUTION
James Bloom (main picture), director at Alternative Bridging Corporation, says: “The level of interest we’ve seen since launching the revamped development finance proposition has been extremely encouraging.
“A more than 50% increase in enquiries tells us that brokers and developers were looking for exactly this type of joined-up solution.
“Too often, development finance has been fragmented into separate conversations around build, exit and longer-term funding. By bringing these elements together into a single, clearly structured facility, we’re giving brokers greater confidence and helping developers plan with far more certainty.”
He adds: “Developers remain active, but they are more cautious and more focused on managing risk. Products that offer flexibility on exit, transparency on pricing and certainty of delivery are resonating strongly, and that’s exactly what this revamp was designed to achieve.”
