Allica doubles maximum loan size to £10m and enhances care home policy

Allica Bank 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.

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 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.

Nick Baker, chief commercial officer at Allica Bank, said: “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.”