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
Specialist lenders offer a wider array of specialist, innovative loan products compared to traditional lenders. This allows them to cater to diverse project needs, whether it’s Overdraft finance, Term Loans or PartX property finance. Each type of specialist lending has its own unique benefits which allows them to fit different situations.
In this article, we will give our top tips on specialist lenders and how they differ from other lenders. We’ll also delve into the advantages of using them, including their flexible approach, faster approvals, and loan structures tailored to individual needs.
The terms “private lender” and “specialist lender” are sometimes used interchangeably, but there are subtle yet crucial distinctions between the two. Private lenders are typically individuals or entities with their own capital reserves who offer loans based on their own risk tolerance and specific criteria. The lending process with a private lender is likely to be less regulated and may be considered higher risk. Furthermore, private lenders often have a smaller pool of funds and may be less inclined to finance large-scale projects.
Specialist lenders, on the other hand, are established organisations with access to a wider pool of funds, often through partnerships with banks, institutional investors, or private equity firms.
Alternative Bridging is a specialist lender. Unlike traditional lenders who may require personal guarantees from directors or other individuals, we use property itself as the primary security for the loan. This approach reduces the financial risk for the borrower and other parties.
LTGDV, or Loan To Gross Development Value, is a key metric used in property development financing. It expresses the ratio between the loan amount and the estimated final value of the development project. Unlike a standard loan-to-value ratio (LTV) that uses the current property value, LTGDV relies on the projected value of the completed development. This makes it a vital tool for lenders assessing the risk involved in financing a development. A lower LTGDV indicates a less risky project for the lender because it signifies a smaller loan relative to the expected final value. Conversely, a higher LTGDV suggests a project with more debt financing, posing a greater risk for the lender.
Specialist lenders employ various risk mitigation strategies beyond LTGDV and property security. This may involve staged loan disbursements tied to specific project milestones. For example, a portion of the loan might be released upon securing planning permission, another tranche upon completion of the foundation, and so on. This approach ensures that the developer utilises the loan funds efficiently and reduces the risk of project delays or financial mismanagement.
Unlike our high-street counterparts with rigid lending criteria and standardised loan products, we pride ourselves on flexibility taking a personalised approach. We know that obtaining specialist finance is never a one-size-fits-all endeavour. Each project presents a unique set of challenges and opportunities. We possess the expertise to tailor loan structures that integrate with the specific needs of your client’s development or other property investment. This adaptability extends far beyond just development finance, we also offer Term Loan, Overdraft and PartX loan facilities.
We are also more receptive to considering projects in their early stages, even before securing planning permission. This agility can be crucial for developers who need to capitalise on time-sensitive opportunities to acquire land or initiate pre-construction activities.
We provide a variety of specialist lending solutions to our brokers. We offer our innovative Alternative Overdraft facility to provide liquidity for site acquisitions, property auction purposes or to find work-in-progress projects. The Overdraft is available from £250k to £2m over 3 to 24 months and allows multiple drawdowns to provide funding when needed.
Our relaunched Alternative Term Loan provides secure funding to support new and growing businesses. It is perfect for purchasing, refinancing and property improvement. The loan is uniquely structured to match cash-flow situations so interest can be accrued when the property income is not yet stabilised. This structuring makes the Term Loan ideal for business start-ups.
We also offer PartX Property Finance which enables developers and homeowners to PartX properties. This enables developers to make sales quickly and the purchasers can move into their dream home quickly. There is also no chain to hold up and the developer can use PartX funds for light refurbishment for either of the properties.
Once you secure a loan from Alternative Bridging, one of experienced BDMs becomes your dedicated point of contact. These specialists handle the establishment and setup of loan. They ensure smooth communication, efficient processing of loan repayments, and are readily available to address any questions or concerns you may have. If you have any questions about specialist finance options offered by Alternative Bridging, please get in touch with one of our experienced, friendly BDMs. You can also contact us on 020 8349 5190.
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