Guide to Specialist Lending

In today’s dynamic property market, there is more need than ever for specialist home loans, with property investors and developers requiring innovative property finance funding solutions that banks have historically been unable and/or unwilling to provide.

Specialist home loans are designed to address specific needs and challenges that traditional financing options often overlook and are typically offered by non-high street lenders. At Alternative Bridging, we specialise in providing inventive lending facilities to cater to these varied demands. This guide outlines our key products – Alternative Overdraft, Alternative Term Loan and PartX Property Finance – and how they solve common financial pain points.

Understanding specialist loans for homes

Unlike conventional loans, specialist home loans are designed to be more adaptable than a standard bank loan or mortgage, providing options for borrowers whose requirements don’t fit with traditional financing. These loans are ideal for property investors, developers, and businesses that require quick and flexible financial solutions.

Alternative Bridging’s specialist lending products:

The Alternative Overdraft

The Alternative Overdraft is a flexible drawdown facility that offers borrowers immediate access to funds whenever needed. It is particularly useful for addressing cash flow challenges, as it allows for multiple drawdowns on demand without the need for reapplying each time. The key benefits of this product include:

• Immediate liquidity: perfect for seizing investment opportunities or managing unexpected expenses.
• Flexible repayment: borrowers pay interest only on the drawn amount, making it a more cost-effective option than traditional facilities.

For example, we recently assisted a client who needed £580,000 to purchase artwork and refurbish nightclubs. The property’s lack of an Energy Performance Certificate (EPC) and its remote location posed challenges. However, by securing an Alternative Overdraft as a second charge loan on his primary residence, the client gained the flexibility to draw funds as needed. This solution allowed for quick access to funds while only paying interest on what was used, demonstrating the product’s adaptability, speed and cost-effectiveness.

The Alternative Term Loan

The Alternative Term Loan is a real innovation in our marketplace due to its lack of Early Repayment Charges (ERCs). It is designed for borrowers who require a longer-term loan but are wary of fluctuating interest rates and upfront fees. This product is particularly beneficial for:

• Long-term planning: it is ideal for projects that require more time to meet regulatory requirements or complete construction.
• No Early Repayment Charges: it offers flexibility without the financial penalties typically associated with term loans.

For example, a borrower in north-west London needed more time to meet planning requirements for a development project. The Alternative Term Loan provided a three-year facility, refinancing existing loans and releasing funds for further refurbishment. The case highlights how our term loan offered the necessary time and financial flexibility to complete the project, which a standard bridging loan would not have provided.

PartX Property Finance

PartX is a pre-consented part exchange facility designed to streamline property transactions, particularly in new housing developments. It solves common pain points like broken property chains and delayed sales by offering developers the finance needed to secure part exchange deals. The key features include:

• Streamlined sales process: it accelerates the sales cycle in new developments.
• Refurbishment funding: it provides additional funds for minor refurbishments, enhancing the resale value of exchanged properties.

Why choose Alternative Bridging for specialist lending? 

With over 30 years of experience, Alternative Bridging is a leader in specialist property lending. We understand that what brokers and their clients need most are flexible solutions that meet their needs and ambitions. We have designed products that meet the needs of property professionals so brokers can easily select the most applicable solution for every case.

Whether it’s managing cash flow, extending timelines for development projects, or streamlining property sales, our products overcome investors’ most common pain points. That’s why we’ve been so successful for 30+ years.

Contact us to get more information on your future specialist home loan needs.