Arrangement fees will be waived on owner-occupier mortgages and commercial investment mortgages of £750,000 and above.
Fees are also waived on specialist buy-to-let (BTL) mortgages of £1.5m and above for all new eligible applications submitted until 30 September 2026.
Allica Bank said this move could save business owners from £11,250 to as much as £300,000 on a £750,000 owner-occupier mortgage and a £15m commercial investment mortgage respectively.
The bank has increased its lending cap from £2m to £5m on commercial properties with a single tenant. Tenants must have at least five years left on their lease.
Furthermore, Allica Bank is also improving its commercial mortgage proposition. For instance, it will increase the maximum amount it will lend against a property’s value to 77.5% on commercial mortgages of £3m and above.
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Nick Baker (pictured), chief commercial officer at Allica Bank, said: “Brokers play a key role in supporting established businesses’ growth ambitions, and they have told us they need more support when it comes to larger, more complex commercial mortgages, especially where clients are weighing up significant upfront costs and tighter lending criteria.
“At Allica, our ambition is to empower brokers to support the businesses they work with, and these changes are designed to do that. By waiving arrangement fees on bigger loans, we are helping established businesses, the backbone of the UK economy, hold on to more of their money so that they can continue to invest in their future.
“At the same time, increasing our loan to value and widening our appetite is about giving brokers more flexibility to structure borrowing that actually works in the real world.”
