Alternative Bridging Corporation has overhauled its residential development finance proposition, creating a single product to finance schemes from construction through to final sale. The new arrangements combine flexibility, cost-effective pricing and certainty of delivery by focusing on essentials and removing obstacles to completion.
The enhanced proposition brings residential development finance and development exit funding into one integrated structure, removing the need for separate facilities while offering a materially reduced interest rate following practical completion.
Alternative Bridging now provides a single residential development finance product with interest priced from the Bank of England Base Rate (3.75%) plus 6.5%, with a maximum loan-to-gross-development-value of 70%.
A rolling construction float enhances construction funding, deducted and repaid from each stage advance. This supports cash flow throughout the build period while maintaining clear funding visibility throughout the project's life.
The automatic transition into a development exit loan following practical completion forms a central feature of the revamp. This is included within the original residential development finance terms, removing the need for a separate refinance application. Upon entry into the development exit phase, the interest rate reduces by 1.5% per annum for the remainder of the term.
The structure also allows for an extended sales period, giving borrowers additional time to maximise sales proceeds without the pressure of a short exit deadline. Where further funding is required during the scheme, brokers can use the Alternative Overdraft secured against underutilised assets to top up the residential development finance facility.
Borrowers also have the option to refinance onto an Alternative Term Loan for two to five years at exit, providing additional flexibility where a longer hold strategy is beneficial.
The revised proposition targets experienced developers and construction professionals seeking a joined-up funding solution, particularly where timing, cash flow management and exit optionality are key considerations.
The single product structure enables brokers to remove complexity, provide positive outcomes and support their clients across the project's life, complementing Alternative's commitment to outstanding service.
"This is a fundamental change in how we structure development finance, and it is one we are very excited to bring to the market," said James Bloom, director at Alternative Bridging Corporation (pictured).
"Rather than treating construction, exit and longer-term funding as separate conversations, we have combined them into a single facility that runs from the commencement of construction through to the final sale. Pricing and terms are clearly stated and adjust to match the risk profile, giving brokers clarity and far more certainty of satisfying their clients' requirements."
"This substantial revamp to include higher lending ratios, lower interest rates and seamless switching to lower rates and longer term facilities further builds on our long-standing support to this sector," he noted.
"It is a strong way to start 2026 and sets the direction of travel for new products and further enhancements that we will bring to the market early this year," he said.
