The Intermediary – February 2026 - Flipbook - Page 31
Q&A
What does the revamped
residential development finance
proposition look like in practice?
Rather than treating construction and exit as two
separate stages, the proposition is structured as
a single residential development finance facility
that runs from build through to sale. Lending
is provided within a clearly defined framework,
with scope to support schemes at higher leverage
where appropriate.
During the build, a rolling construction float
is used to support cash-flow while maintaining
visibility over funding throughout the life of the
project. Once practical completion is reached,
the facility transitions automatically into a
development-exit phase, with pricing adjusting to
reflect the reduced risk profile.
Because that transition is built into the original
structure, there is no need for a separate refinance
application at a critical point in the scheme,
removing a major source of uncertainty for both
brokers and their clients.
How does this structure help
brokers support their developer
clients more effectively?
I think it changes the very nature of the
conversation brokers can have with developer
clients at the outset. Rather than focusing purely
on the build-loan and leaving exit to be addressed
at a later point, brokers can set out a clear, joinedup funding route from start to finish.
This allows developers to plan with greater
trust in the process. The extended sales-period
is a really good example of this. It gives schemes
the headroom to complete sales properly, rather
than forcing decisions simply to meet an artificial
deadline. Where additional funding is needed
mid-scheme, our Alternative Overdraft can be used
against under-utilised assets, adding flexibility
without undermining the core facility.
How does development finance
sit within the wider Alternative
Bridging proposition?
Development finance has always been central to
what we do, and this revamp brings it into closer
alignment with the rest of our offering. Looking at
the bigger picture, we are spending time looking
at how short-term and longer-term funding fit
Developers are active
again, but they are planning
with a clearer view of timing,
cost and risk”
together in cases. That includes development
finance, development exit, overdraft-style
facilities, and term-loans where a longer hold
makes sense. Many schemes float across those
categories over time, so it is important that the
funding can move with them.
Looking ahead, what should
brokers expect from Alternative
Bridging Corporation for the
remainder of 2026?
This revamp sets the direction. It reflects a wider
focus on building products shaped by experience
and real-world behaviour, rather than how deals
look on day one.
As a result, brokers should expect continued
refinement rather than constant change. We
will keep building on this integrated approach
and strengthening the links between short-term
funding and longer-term outcomes, particularly
where development, exit and commercial
strategies intersect. Any enhancements that we
bring to market will be grounded in live cases
and the issues brokers raise with us day-to-day,
ensuring they exhibit how funding is actually being
used across the full life of a scheme.
Finally, how would you sum up the
year ahead for development finance
as a whole?
There is certainly confidence returning, but it is a
more considered type of confidence. Developers
are active again, but they are planning with a
clearer view of timing, cost and risk.
Our role is to support that sensibly. Where a
scheme is well thought-through and the funding
structure reflects reality, good projects can still
move ahead. This development finance revamp is
all about making that easier, giving brokers and
developers the clarity and flexibility they need in
the current market. ●
February 2026 | The Intermediary
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