Alternative Bridging Corporation has reported a surge of more than 50% in development finance enquiries following the overhaul of its development finance proposition last month.
The uplift comes just weeks after the specialist lender introduced a revamped development finance structure designed to support schemes from construction through to final sale within a single, integrated facility.
The lender says brokers have responded positively to the clarity, flexibility and reduced complexity offered by the new approach, particularly in a market where certainty of funding and exit optionality remain critical.
The revised proposition combines residential development finance and development exit funding into one streamlined product, removing the need for separate facilities and refinance applications mid-project. Under the new structure, interest is priced from Bank of England Base Rate plus 6.5%, with lending available up to 70% LTGDV.
A key feature of the proposition is the automatic transition into a development exit loan following practical completion, with the interest rate reducing by 1.5% per annum for the remainder of the term. This provides developers with additional breathing space to complete sales without the pressure of a short or inflexible exit deadline.
James Bloom, Director at Alternative Bridging Corporation, said:
“The level of interest we’ve seen since launching the revamped development finance proposition has been extremely encouraging. A more than 50% increase in enquiries tells us that brokers and developers were looking for exactly this type of joined-up solution.
“Too often, development finance has been fragmented into separate conversations around build, exit and longer-term funding. By bringing these elements together into a single, clearly structured facility, we’re giving brokers greater confidence and helping developers plan with far more certainty.”
Bloom added that the uplift in enquiries reflects broader market conditions:
“Developers remain active, but they are more cautious and more focused on managing risk. Products that offer flexibility on exit, transparency on pricing and certainty of delivery are resonating strongly, and that’s exactly what this revamp was designed to achieve.”
