Allica Bank has refreshed its owner-occupier mortgage offering to give established small and medium-sized enterprises (SMEs) greater flexibility and access to capital, while launching a limited-time cashback incentive for new borrowers.
The business bank, which specialises in lending to established SMEs, has introduced a 0.5% cashback offer on qualifying mortgage applications submitted between 26th November 2025 and 31st March 2026, with completion required by 30th June 2026.
Allica will also waive its standard £500 commitment fee during this period.
As part of its wider lending update, Allica has extended its maximum mortgage term to 30 years and introduced a 5-year interest-only period on loans up to 75% loan-to-value (LTV).
The bank has also raised its maximum LTV to 80% for borrowers in selected professional and industrial sectors, including accountancy, veterinary services, architecture, property surveying, and certain industrial or warehousing businesses.
The changes are intended to support growth-focused firms by improving affordability and freeing up working capital.
They follow Allica’s earlier research which highlighted a £65bn SME lending gap caused by major banks scaling back their appetite to lend to small and medium-sized businesses.
In a recent report, Allica noted that its lending to established SMEs in 2024 supported more than 84,000 jobs, contributed £5.8bn to UK GDP and generated £1.4bn in tax revenue.
Nick Baker (pictured), chief commercial officer at Allica Bank, said: “Right now, many business owners are feeling the squeeze of high costs and limited access to finance.
“They’re ambitious and ready to grow, but too often, the funding they need just isn’t there. That’s where the broker community is so vital – helping those businesses navigate their options and find the finance that fits.
“At Allica, we believe banks have a crucial role to play too. By expanding our mortgage parameters and introducing new, flexible options – from longer terms to interest-only periods – we’re giving established businesses the confidence and headroom to invest in their future.”
He added: “As a bank that rewards its customers, I’m pleased too we’ll be offering cashback and waiving our commitment fees for the next few months.
“We want to make a tangible difference for brokers and their clients. I hope today’s changes show we really mean that.”
