Allica Bank temporarily scraps arrangement fees on borrowing over £750k
Additionally, Allica has increased the maximum amount it will lend against a property’s value to 77.5% on commercial mortgages of £3m and above.
Allica Bank is set to waive arrangement fees on commercial mortgages of £750,000 and above for a limited time, to help brokers to further support the growth of established businesses.
Arrangement fees will be waived on owner-occupier mortgages of £750,000 and above, commercial investment mortgages of £750,000 and above, and specialist buy-to-let (BTL) mortgages of £1.5m and above for all new eligible applications submitted between 7th July and 30th September.
The lender said the 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).
Additionally, Allica has increased the maximum amount it will lend against a property’s value to 77.5% on commercial mortgages of £3m and above, allowing brokers to help borrowers access bigger loans with a smaller deposit.
Allica said it will also now consider lending up to £5m on commercial properties with a single tenant – up from the previous £2m cap – and where the tenant has at least five years left on their lease.
Nick Baker, 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.”
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