ABC launches unlimited resi bridge

Known for its commercial property lending, Alternative Bridging Corporation (ABC) has long been considered a market leader in this particular lending arena.

In recent years, however, ABC has strengthened its residential proposition and B&C heard from Joint Managing Director of ABC, Jonathan Rubins, about this split of lending and the recent launch of two new products…

We view commercial as covering all sectors in which property is owned either for profit or for business purpose and the market perceives this to be in sectors such as retail, office, warehouse, industrial, leisure and mixed use properties - We, however, have always included the residential investment sector as being commercial. The split in our loan book demonstrates this being about 60 per cent commercial and 40 per cent residential.

Our desire to substantially increase all aspects of the book meant we ended 2013 with a £1 million loan secured on a substantial residential ground rent portfolio, which completed within a week of instructing lawyers. December was also a month in which we provided funding for 16 flats in Slough, 11 houses and flats in Twickenham and seven flats in Edgware. So, whilst commercial lending is our main business, residential investment and trading sectors form significant parts of our loan portfolio.

To demonstrate our commitment to the residential sector we have launched a new low rate product geared towards prime residential properties, with rates from 0.95 per cent monthly and loan to value of up to 75 per cent. The product will be available countrywide, with a focus on prime areas for the investments, and available on terms from two months to one year with a minimum loan of £250,000 and no upper limit.

In response to demand from our broker connections we are also expanding our existing proposition with the launch of a new residential development product. Our funding lines for this product is backed by a wealth of in-house experience in the development sector. Understanding developers and their needs is a key component to the service we can offer and being able to provide a bespoke and therefore more appropriate debt package means problems can be avoided when the development is in a crucial stage of construction.

Whilst we have undertaken a number of refurbishment loans over the year, in September last year we completed a £1.5 million residential development loan in Brighton and followed this up in January with a £1.8 million development loan in Norwich. Our rates are competitive, but what makes brokers want to talk to us is that they appreciate that we speak their clients language, we understand their concerns, and make loans happen.

Whilst others focus on residential property we continue to support the commercial sector. So far this year we have already provided loans on a car showroom, a warehouse/distribution centre, a retail development site and several high street retail units.

Our online product portals continue to make it easy for brokers to navigate around our website and attain information. The creation of a new portal for residential development eliminates any potential confusion between our residential development and investment products. With online documents available for download, interactive application forms and a call back request form ABC continue to make it easy and keep it simple.

In line with last year, 2013 has continued to show strong growth enforcing the belief that our comprehensive lending policy and simple lending decisions translate into mutually beneficial business.