Allica Bank enhances development exit product

Allica Bank has enhanced its development exit bridging offering to help property developers make the most of new opportunities created by the government's Your First Home initiative, following this week's Autumn Budget.

Allica will now consider development exit finance for residential schemes over £2.5 million comprising more than one unit, with pricing at 0.65% and a maximum LTV of 75%. Applications will be considered on a case-by-case basis for developments delivering homes intended to meet the first-time-buyer criteria.

Building on the previous Help to Buy scheme, under which first-time buyers accounted for 82% of purchases, Your First Home will make new build home ownership more affordable, widening the pool of potential buyers and helping turn demand into sales.

Scheme applications are expected to open in February 2027, with the first property sales expected from April 2027, which could mean stronger sales rates for developers. 

The move follows September's expansion of Allica's residential AVM bridging proposition to 75% LTV on loans of up to £2 million.

Steve Palfreeman, head of sales for bridging finance at Allica Bank, said: "This week's Budget is a real boost for property developers and it's encouraging to see renewed focus on getting more people onto the housing ladder. But we can't lose sight of the people actually building these homes. If we want to see more homes delivered, we need to make sure that brokers and the developers they serve have the financial backing to keep building.

"That's where Allica comes in. Our enhanced development exit offering gives developers greater flexibility and the confidence to plan their next steps so they can spend less time worrying about securing finance and more time doing what they do best - building homes for people who need them."