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Brokers

Brokercast: tech, AI, and APIs in commercial lending

Allica Bank’s Chief Lending Officer Niv Subramanian and Senior Commercial Manager Jonathan Prince discuss technological developments in the banking industry. They cover the complexity of established SMEs, how challenger banks bridge the gap in business banking and how tech developments help brokers and their clients to serve their needs.

By Allica Bank

5 minute read · 19 April 2024

SMEs Accountants

Bringing business banking back into the mix for accountants

7 minute read · 4 April 2024

Our gender pay gap report

4 minute read · 3 April 2024

Culture

How is Allica doing on gender diversity?

2 minute read · 8 March 2024

SMEs Brokers

"Optimistic but cautious": brokers look ahead at 2024

3 minute read · 6 February 2024

SMEs

The 'orange hat bank'

We’re starting to become known as the orange hat bank (which is fine by us). So why did we choose such a vibrant bowler to represent us?

By Allica Bank

2 minute read · 5 February 2024

Technology

How to protect your data with multi-factor authentication (MFA)

8 minute read · 23 January 2024

Becoming the fastest-growing fintech ever: 2023 in a nutshell.

1 minute read · 19 December 2023

SMEs Accountants

How SMEs can best balance their funding mix

4 minute read · 28 November 2023

Brokers

Brokercast: The challenges of green asset finance lending

4 minute read · 30 October 2023

Commercial investment mortgage

Our commercial, semi-commercial and specialist buy-to-let products are built for landlords and investors.

Key product information

Criteria	Description
Loan size	£150,000 to £15 million
Repayment type	5-year interest only 5-year partially amortising
Arrangement fee	2.0%
Debt service cover	Commercial: 130% Semi-commercial: 120% Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates.
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years

To be eligible, your business must have two full years of financial accounts and be either a Limited Company or LLP registered at Companies House, or a partnership or sole trader that operates in England, Scotland or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

Owner-occupied commercial mortgage

Owner-occupied mortgages are at the heart of what we do. We help businesses buy or refinance the buildings they work from.

Key product information

Criteria	Description
Loan size	£150,000 to £10 million
Repayment type	30 year capital & interest 5-year interest-only available at the start of the loan term for loans up to 75% LTV
Arrangement fee	1.5%
Debt service cover	130% Calculated on the rate not including the current account discount Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years
Owner-occupied hotels	Loans over 80% of VP value must be fully amortising from day one Personal guarantee to be given for any amount in excess of 70% of VP value

To be eligible, your business must have two full years of financial accounts and be either a Limited Company or LLP registered at Companies House, or a partnership or sole trader that operates in England, Scotland or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

Buy-to-let commercial mortgage

Specialised commercial investment mortgages, designed to fund landlords purchasing residential HMOs and MUFBs.

Key product information

Criteria	Description
Loan size	£200,000 to £15 million
Repayment type	5-year interest only
Arrangement fee	2.0%
Interest cover	130% standard, 145% higher rate taxpayer Gross rent used for residential/ MUFB applications if; evidence of 3 months' loan repayments in cash via bank statements and one UBO/director with Experian Consumer score of 881+ plus a supporting personal guarantee. Otherwise we will use net rent assumption of gross rent minus 10%. HMO properties will always be assessed using gross rent minus 25%
Early repayment charges	5%, 4%, 3%, 2%, 1% (years 1–5)

To be eligible, your business must have two full years of financial accounts and be either a Limited Company or LLP registered at Companies House, or a partnership or sole trader that operates in England, Scotland or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

Healthcare commercial mortgage

Healthcare is a specialist area, and one where experience matters. We provide specialist sector support for care homes, nurseries and specialist healthcare operators.

Key product information

Criteria	Description
Loan size	£500,000 to £15 million £5 million maximum loan for first time buyers
Repayment type	Capital and interest Experienced operators: 30 years First time operators: 20 years
Arrangement fee	1.5%
Debt service cover	130% adjusted EBITDA for children’s nurseries and experienced care operators 150% adjusted EBITDA for care first-time buyers Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates
Minimum size	Care homes: 20 bedrooms Specialist care: 4 bedrooms, if one or two properties, and flexible if there are three or more properties Children's nurseries: 40 places
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years
Specialist care operators	Children’s learning disability care Adult learning disability residential care Adult supported living Minimum of three years as a specialist care home owner-operator required

To be eligible, your business must have two full years of financial accounts and be either a Limited Company or LLP registered at Companies House, or a partnership or sole trader that operates in England, Scotland or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

Bridging finance

Short-term finance to bridge gaps in funding or operations. Uses include funding refurbishments, quick acquisitions, mortgage delays, EPC improvements, stabilisation periods, and much more.

Key product information

Criteria	Description
Loan size	£150,000 to £10 million
Maximum loan to value	75% for residential and semi-commercial properties, 70% for commercial
Term	Up to 24 months
Fees	Arrangement fee of 2%, deducted from advance
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Security	First legal charge over freehold or long leasehold title(s)
Insurance	Title insurance and search indemnity applied where possible
Valuations	AVMs and desktop valuations available up to 70%
Interest	Retained or serviced

To be eligible, your business must have two full years of financial accounts and be either a Limited Company or LLP registered at Companies House, or a partnership or sole trader that operates in England, Scotland or Wales.

We can lend to newly incorporated Special Purpose Vehicles (SPVs) on a case-by-case basis.

Businesses can include those trading from freehold/long leasehold property in England, Scotland and Wales e.g. offices (including professional practices), industrial units, mixed-use, warehouses, factories, retail, hotels, guest houses, restaurants, public houses, convenience stores and children’s day nurseries. Security will be required.

For more information, read our tariff of fees, our mandatory information checklist or our fixed rate breakage costs facts sheet.

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