23 June 2014
A new revolving, secured loan facility offering borrowers the opportunity to repay and redraw funds, to satisfy cash flow requirements, has been launched by short-term lender Alternative Bridging Corporation Limited (Alternative Bridging).
Secured Revolving Loans, similar to a bank overdraft in that sums cans be advanced, repaid and re-advanced, provide an alternative to fixed period short-term bridging loans and on-demand borrowing from High Street banks. Complementary to Alternative Bridging’s short-term loan programme, they provide capital to the property industry and business community secured against owner-occupied homes and retail, industrial and commercial properties.
The PRIME Secured Revolving Loan programme provides first and second mortgages at lower interest rates and suits loans from £250,000 to £5m with a lower risk profile, for example, properties in strong locations or where there a proven and reliable cashflow or a low loan to value ratio.
FLEX Secured Revolving Loans are available up to £2m to unravel more challenging situations where an individual, flexible approach is needed such as where the property is in need of refurbishment or where issues relating to tenancies or planning need to be resolved.
Interest rates for new Prime loan proposals will be from 0.75% per month for first mortgages and 1.1% on second mortgages for periods up to 36 months. Brian Rubins, Managing Director of Alternative Bridging said:
“Prime and Flex Secured Revolving Loans enable the borrower to repay and redraw the loan in parallel with ongoing cashflow requirements and to cancel the arrangement when it is no longer required and are ideal for purposes such as auction purchases and seasonal trading. With individual underwriting and a measured approach to risk, they provide a convenient alternative to bank overdrafts for purchase and refinance or to release capital when it is needed.”