Alternative Bridging Corporation has restructured its residential development finance offering, replacing multiple facilities with a single product designed to fund schemes from construction through to sale.

The lender has combined residential development finance and development exit funding into one integrated structure, removing the need for separate applications and refinances.

The revised approach is intended to reduce complexity for brokers and borrowers, while providing greater certainty around pricing, funding and delivery.

Under the new proposition, Alternative offers one residential development finance product priced from the Bank of England base rate, currently 3.75%, plus 6.5%. The facility is available up to 70% loan-to-gross-development-value.

CONSTRUCTION FLOAT

During the construction phase, funding is supported by a rolling construction float. This is deducted from, and repaid through, each stage release, with the aim of smoothing cash flow while maintaining transparency over funding levels throughout the project.

A key element of the revamp is the automatic transition into a development exit loan once practical completion is reached.

This transition is built into the original terms and removes the requirement for a separate refinance. At this point, the interest rate reduces by 1.5% per annum for the remainder of the loan term.

LONGER SALES PERIOD

The structure also allows for a longer sales period, giving developers additional time to achieve disposals without the pressure of a short-term exit deadline.

Where additional funding is required mid-scheme, brokers can supplement the facility using the Alternative Overdraft, secured against under-utilised assets.

At exit, borrowers have the option to refinance onto an Alternative term loan for a period of two to five years, where a longer-term hold strategy is more appropriate.

The revised proposition is aimed at experienced developers and construction professionals looking for a joined-up funding solution, particularly where timing, cash flow management and exit flexibility are critical.

SINGLE FACILITY

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

“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.”

MORE CERTAINTY

And he added: “Pricing and terms are clearly stated and adjust to match the risk profile, giving brokers clarity and far more certainty of satisfying their clients’ requirements.

“For over 30 years we have been a very active principal funder to the residential development sector and this substantial revamp to include higher lending ratios, lower interest rates and seamless switching to lower rates and longer term facilities further builds on our long-standing support to this sector.

“It is a strong way to start 2026 and sets the direction of travel for new products and further enhancements that we will bring to the market early this year.”