Allica broadens commercial mortgage offering and shoots for £500m goal

Hitting this milestone would mean the lender has achieved the same amount of committed loans offers in the last four months of the year, as it had in the first eight months of 2022. 

These latest ambitions follow the bank announcing it had completed £1bn in lending to SMEs in July, with a view to increase this to £3bn by the end of 2025. It also wants to compete with high street lenders through rate reductions and the launch of a discounted rate product for energy efficient properties. 

Allica adds new interest-only product

In response to feedback from a broker panel, Allica Bank has added a fixed rate interest-only product to its commercial range and will launch a 10-year fix later this month. The lender said the addition of the long-term fixed rate deal came off the back of 56 per cent of its broker panel citing a demand for the product. 

Some 143 brokers responded to its survey. 

Nick Baker, chief commercial officer of Allica Bank, said rising energy prices and the increasing base rate meant commercial property investors and business owners were looking for ways to fix or manage their costs. 

He added: “We hope that these new additions to our mortgage proposition will give brokers and their clients more opportunities to do that, along with the support of Allica’s award-winning business development manager team.” 

Baker said: “We’ve set ourselves an ambitious goal to achieve a further £500m of committed loan offers between September and the end of the year. But considering Allica’s significant growth in recent months, the strengthening of our team and systems behind the scenes, and the unwavering support of our broker community, I am confident we’ll be able to achieve it.”