Allica Bank has expanded into the specialist buy-to-let (BTL) market with a target of £100m in mortgage offers by the end of the year.
This decision came after extensive broker feedback and increasing demand for specialist property finance.
The bank’s new offering aims to support brokers and established small and medium sized enterprises (SMEs), providing funding for residential BTL property portfolios, houses in multiple occupation (HMOs), and multi-unit freehold blocks (MUFBs).
Brokers can access up to 75% loan-to-value (LTV) on loans ranging from £250,000 to £10m, with competitive rates starting at 5.80% fixed.
Discounts will apply to larger loans or energy-efficient properties.
Debt service cover ratios have been set at 110% or 125% for higher-rate taxpayers, lower than the rest of Allica’s commercial investment mortgage range.
Nick Baker (pictured), chief commercial officer at Allica Bank, said: “Our job has always been to listen to what our brokers are saying and provide a proposition that meets their needs and those of the established SMEs that they serve.
“The introduction of specialist buy-to-let mortgages is in direct response to market demand and we have set ourselves a hefty target of £100m before the end of the year, a target we have a hefty desire to significantly exceed!”
