This was interest priced from the Bank of England base rate (currently 3.75%) plus 6.5% with a maximum LTGDV of 70%.

Construction funding is provided by a rolling construction float, deducted and repaid from each stage advance. This is designed to support cashflow throughout the build period while maintaining clear funding visibility throughout the life of the project.

The product also now includes an automatic transition feature into a development exit loan following practical completion of a scheme.

This is included within the original residential development finance terms, removing the need for a separate refinance application. Upon entry into the development exit phase, the interest rate reduces by 1.5% p.a. for the remainder of the term.

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At exit, borrowers also have the option to refinance onto an alternative term loan for a period of two to five years, providing additional flexibility where a longer hold strategy is beneficial.

“This is a fundamental change in how we structure development finance and it is one we are very excited to bring to the market,” said James Bloom, director at Alternative Bridging Corporation (pictured above).

“Rather than treating construction, exit and longer-term funding as separate conversations, we have combined them into a single facility that runs from commencement of construction through to the final sale.

“Pricing and terms are clearly stated and adjusted to match the risk profile, giving brokers clarity and far more certainty of satisfying their clients’ requirements.”