Alternative Bridging Corporation launches part exchange product

This will enable the quick sale of newly developed homes by giving developers finance to complete a part exchange purchase with a buyer. Extra funds can also be provided for light refurbishment for developers who want to make renovations to a part exchanged property and boost its resale potential. 

The terms of the facility are agreed at outset and due diligence is completed in advance to allow the loan to be issued quickly.  

The product is available in instances where Alternative Bridging Corporation has issued the original development loan or this has been advanced by another lender. 

Jonathan Rubins (pictured), director at Alternative Bridging Corporation, said: “We have always been an innovative lender, with ground-breaking products like Dev90 and the Alternative Overdraft, so when we heard the Chancellor’s Autumn Statement, it was obvious that the state of the UK economy, and particularly the increased cost of home loans, would cause house sales to slow down and transaction times to extend. There had to be a simple answer to this problem, and we believe PartX is the solution. 

“This type of part exchange property finance is good for developers, enabling them to complete a sale swiftly at full value. It’s a win-win situation for the owners of the part exchange property, who are able to sell their property and complete the purchase of their dream home without waiting to find a buyer. And it provides brokers with an additional financial tool they can use to help their clients.” 

He added: “We want to support our developer clients, some of whom we have worked with for many years, but to also extend this assistance to developer clients of other lenders. PartX enables developers to maintain the rate of sale on their sites and, importantly, to repay their development facilities on time. An added bonus is that the PartX interest rate is likely to be lower than their development loan.”