Nick Baker

Allica Bank ups maximum commercial mortgage loan size to £3m




Allica Bank has boosted the maximum loan size for its commercial mortgages from £2m to £3m.

The lender hopes the move will help its brokers serve even more of their clients.

The bank has also made several changes to its fee structure, with the aim of reducing the upfront cost to the customer and making things more straightforward.

This includes: 

  • commitment fee changed from 0.25% to a flat fee of £500, refunded at completion. It will need to be paid once a formal loan offer is made and before a valuation is instructed
  • increased arrangement fee to 2% (previously 1.5%), which can be added in full to the loan.

The introducer commission will remain at 50% of the arrangement fee.

Rather than a borrower paying Allica’s legal fee upfront, it will now rely on the provision of an undertaking for the legal fee to be provided by the borrower’s solicitor.

In addition, the lender has added a new valuation panel manager, which will collect the valuation fee directly from the borrower.

Nick Baker, head of intermediaries at Allica Bank (pictured above), said: “Our broker survey [in January 2021] returned some fantastically positive results, which we’ll be sharing more widely soon. 

“However, a recurring piece of feedback our brokers gave was that they’d like us to increase our maximum loan sizes and simplify our fee structure.

“I’m pleased that we were able to act quickly and introduce these adjustments to make doing business with Allica even easier for brokers and their clients.”

Leave a comment