The lender said that by focusing on the essentials and removing the obstacles to completion, the new offering would give borrowers flexibility, cost-effective pricing and certainty.
The Alternative Bridging Corporation will bring its residential development finance and development exit funding into one structure, removing the need for separate facilities. The offering will also have a materially reduced interest rate following practical completion.
The product is priced at 6.5% above the base rate and available up to 70% loan to gross development value (LTGDV).
The funding of construction is supported by a rolling construction float, which is deducted and repaid from each stage advance. The lender said this would support cash flow during development while providing funding visibility.
The facility automatically transitions into a develop exit loan following practical completion and is included within the original residential development finance terms. This means there is no need for a separate refinance application.
The new-build energy advantage
Sponsored by Halifax Intermediaries
When the development exit phase begins, the interest rate falls by 1.5% per annum for the remainder of the term.
Alternative Bridging Corporation said this allowed for a longer sales period and gave borrowers time to maximise sales proceeds.
If additional funding is required, borrowers can access the lender’s Alternative Overdraft and secure it against underutilised assets.
At exit, borrowers can choose to refinance onto an Alternative Term Loan for 2-5 years.
James Bloom (pictured), director at Alternative Bridging Corporation, said: “This is a fundamental change in how we structure development finance and it is one we are very excited to bring to the market. Rather than treating construction, exit and longer-term funding as separate conversations, we have combined them into a single facility that runs from 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.”
He said the revamp showed the lender’s support for the sector, adding: “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.”
