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.
Alternative Overdraft Facility
Our Overdraft facility is one of our latest and most innovative products providing you with liquidity on tap. It is the perfect facility to use for site acquisitions, property auction purchases or to fund work-in-progress. Loans are from £250,000 to £2M and enable under-utilised assets to play a prominent role in your finance arrangements.
Available for 2 years it provides multiple drawdowns on demand which can be repaid or redrawn over and over again. Interest is charged on the balance outstanding and can be serviced. It also avoids expensive, repetitive setting-up costs.
Best secured by first charge on under-utilised property assets or by first charge over commercial or residential and second charge over residential properties.
View our ‘6 steps to funding success’ here.
As amounts can vary, please contact us to discuss your Alternative Overdraft with one of our experienced BDMs. We’ll quickly make a decision regarding your requirements to ensure swift set-up and speedy access to your new overdraft facility.
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You will automatically be directed to download an application form when you register.
Loan Term 3 – 24 months
Amounts £250,000 – £2,000,000
LTV up to 70%
Interest from 0.90% per month on balance outstanding (accrued) for loans <£500,000
(Residential only)
LTV up to 65%
Interest from 1.05% balance outstanding (accrued) for loans <£500,000
Non-utilisation Fee 0.2% per month on undrawn balance
Secured on Investments and owner-occupied commercial property:
Alternative Bridging Corporation’s Overdraft facility is available for any business purchase such as private treaty purchase, refurbishment, improvement, refinance, working capital and release of equity.
Find out all the answers to your frequently asked questions about our Overdraft Facility.
Our Overdraft is a truly flexible loan facility available for 2 years and then subject to review. It can be secured by first charge over commercial or residential and second charge over residential properties. It provides multiple drawdowns on demand which can be repaid or reduced and redrawn again and again. Interest is charged on the balance outstanding and can be serviced.
The Alternative Overdraft is a revolving credit facility that can be drawn upon whenever required, allowing borrowers to draw, repay or reduce funds as needed. There is no need for costly set-up charges each time a loan is needed and can be secured by a first or second charge on a residential or commercial property.
You can use the overdraft to your advantage in a wide range of ways. Once the facility is agreed, you can use it immediately in order to make the most of an opportunity or urgent need, rather than having to go through an application process each time you want to draw down funds.
You can use the Alternative Overdraft to your advantage in a wide range of ways. Once the facility is agreed, you can use it immediately in order to make the most of an opportunity or urgent need, rather than having to go through an application process each time you want to draw down funds.
The Alternative Overdraft can be used to purchase property being sold in the traditional manner (usually via an agent), or via auction.
Buying property at auction requires the ability to move fast, as well as having certainty of funding. The Alternative Overdraft is perfect for auction purchases as you can access the funds immediately.
Your property financing needs reviewing regularly to ensure arrangements that were appropriate months or years ago remain the best option. A short-term bridging loan can give you time and space to find the right option when your current long-term deal is expiring.
Costs have a habit of spiralling and budgets which were once sufficient to cover the costs of renovation can suddenly fall short. Without working capital, progress can stall or costs can be compounded through delay. A bridging loan will give you the working capital you need to bring the project to completion.
Commercial developers will often use the proceeds of sale from one project to fund the next, but delays in the sale process can often mean the money remains locked in your property at the precise moment you need it to seal a new opportunity.
Use the Alternative Overdraft to release equity in your current holdings so that, when opportunities arise, you have the liquidity to buy.
Our overdraft is available for properties including:
You can take a loan to purchase commercial property against a wide range of property types, but there are some exceptions for which we generally do NOT offer finance. These typically relate to the more unusual or agricultural end of the market and include:
In certain instances, for example where a larger holding includes one of the above as a small part of it, we may, depending on the project and borrower specifics, be able to make an exception, so treat the above list as indicative and call us to explore your project finance.
For first charges our Alternative Overdraft starts at £250,000. The maximum loan is £2,000,000. In the case of second charges; available for residential only; the minimum loan is £250,000 with a maximum of £2,000,000.
The loan to value (LTV) is up to 70% (65% for a second charge). As noted above, these terms are indicative, so please get in touch to discuss your project with us. Depending on your circumstances, the property, the projected value etc we may be able vary amounts and terms.
At its core, a drawdown facility is an arrangement that offers borrowers a pre-agreed limit of funds that they can access over a specific period. Unlike traditional loans where the lender disburses the entire sum upfront, a drawdown facility permits borrowers to access the funds as and when they need them, much like a credit card. The central appeal of this mechanism lies in its potential to save on interest costs, as typically, interest accrues only on the amount actually drawn, not the entire pre-agreed limit.
We have just cut our Interest Rates on the Alternative Overdraft!
1.05% per month on balance outstanding (accrued) for loans <£500,000
1.10% balance outstanding (accrued) for loans <£500,000
All our loans for the Alternative Overdraft are secured against the property by a charge registered with the Land Registry.
Holding a first charge against a property will always be our preference when agreeing any loans as first charges will take precedence against any other subsequent charges. That’s why we will typically offer a larger loan as holder of the first charge. Unlike many other property lenders, if we believe there will be sufficient equity in the property we will consider a second charge loan.
We always endeavour to say yes. That’s the beauty of arranging an Overdraft for property with us. Let us say yes to you, simply and swiftly.
Talk to us about your immediate or pending lending needs, don’t hesitate, make an enquiry with us today!
