Alternative Bridging lowers rates on overdraft drawdown product

The Alternative Overdraft offers a “flexible loan facility” which delivers funds with 24 hours’ notice and gives borrowers the opportunity to “draw, repay or reduce funds to match their needs”.

The product is available for two years and can offer multiple drawdowns on demand that can then be repaid or redrawn again.

Interest is charged on the outstanding balance and can be serviced, the lender said.

The firm said the design of the product “avoids expensive, repetitive setting-up costs” and is ideal for site acquisitions, property auction purchases or to back work-in-progress projects.

Loans between £250,000 and £2m can be accessed and the facility allows under-utilised assets to finance new investment.

Jonathan Rubins, director at ABC, said: “The Alternative Overdraft is the ideal loan arrangement for the property industry and business community, enabling the peace of mind of being able to quickly access liquidity when it is needed, without additional charges or delay. At the same time, interest is only charged when funds are used.

“We think it is best secured by first charge on under-utilised property assets or by first charge over commercial or residential and second charge over residential properties, but however it’s used, we know that the Alternative Overdraft can be a valuable tool in any investor’s toolkit.”