Allica Bank has expanded its commercial mortgage offerings by entering the specialist Buy-to-Let (BTL) market. Responding to strong broker feedback and the increasing demand for tailored property finance solutions, the bank has set an ambitious goal of providing £100 million in specialist BTL mortgage offers before the year’s end.
Supporting Brokers and Real Estate Investors
With a strong commitment to brokers and established SMEs, Allica’s new mortgage proposition is designed for professional property investors. The offering includes funding for:
- Residential Buy-to-Let portfolios
- Houses in Multiple Occupation (HMOs)
- Multi-Unit Freehold Blocks (MUFBs)
Brokers can access loans ranging from £250,000 to £10 million, with up to 75% Loan-to-Value (LTV) and competitive fixed rates from 5.80%. Additionally, discounts are available for larger loans and energy-efficient properties. Debt Service Cover Ratios (DSCR) are set lower than Allica’s standard commercial investment mortgages—110% or 125% for higher-rate taxpayers—making the product more accessible to investors.
Listening to Market Needs
Nick Baker, Chief Commercial Officer at Allica Bank, emphasized the bank’s broker-first approach:
“Our priority has always been to listen to our brokers and create solutions that align with their needs and those of the SMEs they support. The introduction of specialist Buy-to-Let mortgages is a direct response to market demand. We’ve set a bold target of £100 million in offers by year-end, and we’re eager to surpass it.”
A Period of Strong Growth for Allica Bank
The launch of this new product comes amid a period of significant expansion for Allica Bank. In the past year, the bank surpassed £3 billion in lending to established SMEs and was ranked #1 in The Sunday Times 100 list of the UK’s fastest-growing companies.
This year, Allica has already implemented rate reductions across its commercial lending products and enhanced its bridging finance offerings, further strengthening its position in the specialist finance market.
With a sharp focus on supporting property investors and brokers, Allica Bank’s new Buy-to-Let mortgages are set to be a game-changer in the industry.
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