The lender’s two new bridge-to-term products — the ‘stabiliser’ and the ‘improver’ —can both run for up to seven years, with an initial bridging period of up to two years that automatically shifts to a lower-cost term loan when agreed conditions are met.

The stabiliser is designed to help businesses meet commercial mortgage criteria over time, with loans from £250,000 to £5m.

Rates start from BBR plus 6.45% during the bridging phase.

The improver is tailored for refurbishments, especially those enhancing a property’s environmental credentials.

Loans range from £500,000 to £5m, with rates from BBR plus 7.05% during the bridging phase.

In both cases, borrowers transition to commercial mortgage rates from BBR plus 2.9% for owner-occupiers and BBR plus 4.45% for investors.

Clients can also choose to release equity at the trigger stage for further investment.

Brokers will be paid commission both at origination and the trigger point.

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The launch comes following the news that Allica posted a record month for its bridging finance team in April, which saw its highest level of lending and new introductions since Allica acquired Tuscan in August last year.

Nick Baker, CCO at Allica Bank (pictured above), said: “We’re proud to launch Allica’s new bridge-to-term proposition — a truly innovative way to give brokers and borrowers the certainty they need in a changing market.

“By combining bridging and term lending into a single, streamlined journey, we’re helping established businesses act quickly and confidently on their property plans — without the usual delays, fees, or duplicate underwriting.

“This launch is the result of significant work from our team, and close collaboration with our broker community.

“It’s a major step forward in our ambition for Allica to become a break-out bridging lender.”