Our short term bridging loans are for purchase, refinance, property improvement or to unlock working capital for business purposes.
This unique overdraft provides you with a flexible drawdown facility giving you instant liquidity and avoids heavy setting-up costs.
Individually structured loans for residential and commercial projects, with finance available for site purchase, construction and fees, refinance, equity release and to provide working capital. Loans are available up to 90% of the site cost.
Flexible first and second charge non-regulated loans available on terms from 3 to 5 years.
We have a commitment to innovation and with the ever changing financial landscape around us we have designed a range of unique Specialist Lending products that solve a range of property finance needs.
By Jonathan Rubins, Director & Chief Commercial Officer at Alternative Bridging Corporation
A bridging loan is a short-term financing solution designed to provide individuals or businesses with quick access to funds until they secure permanent financing or remove an existing financial obligation. These loans are often used to help bridge the gap between the purchase of a new property and the sale of an existing one. Bridging loans are essential for maintaining liquidity and ensuring smooth financial transitions during critical periods. First-charge bridging loans are secured against a property that has no other existing loans.
This is a short-term loan secured against a property that has no other existing loans. This means the lender has first claim on the property’s value if there’s a default on the loan. Second-charge bridging loans are secured against a property that already has a mortgage or other loan secured against it, making it the lender’s second charge on the property.
First-charge loans typically offer higher loan amounts and lower interest rates compared to second-charge loans, as they pose less risk to the lender. As a primary lender, the lender secures the first charge on the property. This offers enhanced security for the loan, allowing the lender to offer more competitive rates to clients.
First-charge bridging loans can serve various purposes, offering an important lifeline in several scenarios. These loans are particularly advantageous for borrowers who need to act quickly in property transactions. Whether purchasing a new property before selling an existing one, financing renovations, or addressing urgent cash flow needs. First-charge bridging loans provide the necessary funds without delay. The speed of approval is a key benefit enabling clients to capitalise on suitable opportunities that might otherwise be missed.
Businesses can also benefit from first-charge bridging loans to manage cash flow. They can be particularly useful during periods when awaiting payment of invoices or when needing to make notable investments. This can help maintain business operations smoothly without financial strain. Additionally, a first-charge loan can be used to consolidate existing debts. By doing so, our broker’s clients can simplify their financial commitments into one manageable payment, often with more favourable terms.
The short-term nature of first-charge bridging loans makes them an ideal solution for bridging financial gaps. With terms ranging from 3 to 24 months, borrowers can secure immediate funding while arranging long-term financing or completing a property sale. This interim financing provides peace of mind and financial stability during transitional periods.
In summary, a first-charge bridging loan offers a secure, quick, and flexible funding option. It’s designed to facilitate smooth and efficient property transactions and address urgent financial needs with confidence. By prioritising clients’ requirements and providing personalised service, the lender ensures that first-charge bridging loans are reliable and beneficial financial tools.
Our approach to first-charge bridging loans emphasises excellent service, flexibility and speed. We understand the importance of personalised solutions, and our team is focused on providing loan terms that work with each client’s circumstances. This personalised service ensures that our clients receive the support they need to achieve their financial objectives.
We offer residential bridging loans with fewer hoops. These loans are secured by a first or second charge mortgage on a range of residential investment properties.
They can be used for property purchase, refinance, property improvement or to unlock working capital. They are available for up to 24 months in the amount of £150K to £3.5M. These loans are now available with an LTV of up to 75%.
In first charge, they can be used on residential investments, student accommodation and licensed HMOs. With our short chain of command, we can make quick decisions, allowing you to complete your deal without delay.
Our Commercial Bridging Loans can be secured against office buildings, retail units, industrial premises and other investment properties. These loans are available for terms between 3-24 months, with amounts ranging from £150K to £3.5M. They can be used for purchasing property, refinancing or releasing equity.
Alternative Bridging Corporation (Cheval) Limited is authorised by the Financial Conduct Authority (FCA) to offer regulated first and second-charge loans. These loans are available for terms of 3-12 months, with amounts ranging from £250K to £3.5M. They can be secured against owner-occupied houses and flats.
Our Light Refurbishment Loans are designed to fund projects that do not require planning permission. These loans provide fast bridging finance that can be secured on a number of property types. These include buy-to-let houses on assured shorthold tenancies, licenced HMOs, residential investments, student accommodation, and owner-occupied retail, industrial and office properties.
Our case study for a Regulated Residential Loan, in Berkshire is a great example of a first charge bridging loan. A client needed to redeem the long-term mortgage on a detached dwelling on 40 acres of land. This resulted in the mortgage on the property being moved onto the lender’s Standard Variable Rate (SVR).
As a solution, we were able to quickly process and provide a first charge Regulated Residential Bridging Loan to the value of £3M. This loan proved to be a financial lifeline for the client. The initial underwriting, valuation and legal processes were advanced quickly, with the broker’s expertise and involvement playing a crucial role in streamlining the process. The broker maintained open communication with the client and our team, ensuring a smooth and efficient transaction. Thanks to their efforts, the loan was completed within just three weeks.
The loan enabled the client to redeem the long-term mortgage, significantly easing pressures on their finances. The client was also able to complete light refurbishments on the property, ensuring it was in the best possible condition for selling. With the financial freedom provided by the loan, they were able to market the property advantageously to get the best possible resale value.
This case study demonstrates how a bridging loan from Alternative Bridging, along with our dedicated service, helped the broker’s client overcome multiple complex financial challenges.
If you have any questions about first-charge loans, bridging loans in general or any of our other specialist finance options, don’t hesitate to get in touch. Our friendly, knowledgeable BDMs are available to answer any queries you may have.
We can be reached by submitting a contact form, or by calling us on 020 8349 5190.
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