Alternative Bridging Corporation has relaunched its Term Loan, which now features no Early Repayment Charges (ERCs).
The Alternative Term loan is available for terms from three to five years, up to a maximum LTV of 70% and a maximum loan size of £4m.
The revised product features no ERCs, providing borrowers with the flexibility they need to refinance onto a longer term if they find a rate that proves attractive.
The short-term lender will also take a bespoke approach to every case and, where appropriate, is able to offer one-to-one debt servicing ratio cover.
The Alternative Term Loan provides secure funding for the property industry and business community, available to support new and growing businesses, asset management situations or to release working capital. It can be used for purchase, refinance and property improvement.
Loans can be structured to match cash-flow including special arrangements for interest to be accrued when the property income is not yet stabilised, which can be ideal for business start-ups.
Jonathan Rubins (pictured), director at Alternative Bridging Corporation, said: “There is much speculation that interest rates may have peaked and the mortgage price war in the mainstream market would certainly suggest this. The truth is, however, that nobody knows what will happen in the future and while some borrowers are opting for bridging to buy time to see what will happen, a term loan from a specialist lender like Alternative Bridging is sensible middle ground between a bridge and a longer-term lender, particularly when there are no ERCs, as is the case with our Term Loan.
“The removal of ERCs provides borrowers with the peace of mind that they won’t be hit with any hefty fees if interest rates do come down and they spot an opportunity to switch to a longer-term product.”
