Allica Bank

Allica Bank revamps commercial mortgage offering with larger LTVs

Allica Bank has enhanced its commercial mortgage product range to help SMEs secure finance for future growth.

The changes include extending the maximum LTV, reducing interest rates, and increasing broker procuration fees to 1.5% for owner-occupied, commercial, and semi-commercial investment mortgages.

The bank will be applying a 25bps reduction across all loans in excess of £1.5m on both commercial investment and commercial owner-occupied mortgages.

Allica will also continue its prime rate offering for owner occupiers at 3.5% plus base rate, for loans demonstrating two-times debt service cover up to 60% LTV.

The lender has also adjusted its appetite for most trading property types, with its maximum LTV for owner-occupied mortgages boosted to 80% against vacant possession value.

The increase applies to loans secured on trading business premises, including children’s day nurseries, professional practices and convenience stores.

For owner-occupied commercial mortgages where clients can demonstrate two-times debt service cover, Allica will consider up to 80% LTV on most property types.

The finance provider’s commercial and semi-commercial investment loans will now also have a maximum LTV of 75% of vacant possession value across most property types.

Nick Baker, managing director of intermediaries at Allica (pictured above), said that the input of the lender’s broker partners has been key to how it has developed its proposition.

“We have a joint mission at Allica with our broker community to support as many SMEs as possible with the access to the finance they need to achieve their goals.

“That’s why we place so much emphasis on collaborating with brokers.

“The more feedback they give us on how we’re doing, the better we can adapt to ensure we’re giving them the tools they need to support their clients.

“This is exactly what we’ve seen with this latest round of enhancements to our product offering.

“We look forward to evolving further with the help of our broker community in 2022.”

Allica’s product portfolio was updated in response to its broker survey in December.

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