Allica doubles maximum loan size to £10m
Allica Bank, the fintech challenger bank dedicated to supporting established SMEs, has doubled its maximum commercial mortgage loan size from £5 million to £10 million as it looks to ramp up support for business owners in a challenging market.
In what is the largest percentage increase in the bank’s history, the new £10 million limit will cover both single loans and the combined value of multiple loans to the same customer.
The move follows Allica forecasting in 2022 it would complete an additional £3 billion of lending between then and 2024.
It also launched a 10-year fixed rate mortgage in late-2022, along with a blanket reduction in rates across all of its variable rate loans.
In addition, the bank is offering further financial support to the underserved care home market with significant enhancements to its care home policy, including a reduction in debt service thresholds for both first-time buyers and experienced operators.
It is also expanding its asset classes to cover specialist care assets including residential care for children, as well as adults.
The increase in Allica Bank’s maximum commercial mortgage loan limit and its care home product enhancements are both in direct response to extensive feedback gathered in Allica’s broker survey in Q4 2022.
Nick Baker, Chief Commercial Officer at Allica Bank, says it’s vital that banks continue to proactively support the UK’s business and broker communities:
“We understand that 2023 will be a critical year for many SMEs.
That’s why it’s key that banks continue to work closely with brokers to ensure they are best serving the needs of these businesses and adapting their product offerings to meet changing demand.
These enhancements were designed in line with the feedback our broker community gave us as to how we can help even more of their clients. We expect to see plenty more coming over the rest of the year.”