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Allica Bank’s latest commercial mortgage Broker Survey results

Nick Baker reviews Allica Bank's latest commercial mortgage broker survey results from Q2 2021.

By Nick Baker

5 minute read · 14 June 2021

Meet the team Brokers

Meet Danny McMurdo, Business Development Manager, South West at Allica Bank

4 minute read · 9 June 2021

Brokers

Brokercast: How brokers and banks can work together to stamp out fraud

3 minute read · 27 May 2021

Brokers

Brokercast: how banks and solicitors can make doing deals more broker-friendly

2 minute read · 27 April 2021

Brokers

Brokercast: Innovation in valuation, with Daniel Owen-Parr

3 minute read · 31 March 2021

Brokers

Brokercast: How brokers and underwriters can collaborate for quick decisions

Allica Bank’s Nick Baker, Managing Director, Intermediaries, and Head of Underwriting Bob Buchan discuss how Allica's underwriting team works, and any advice Bob has for brokers when it comes to submitting deals in order to progress things quickly through the underwriting stage.

By Allica Bank

4 minute read · 2 March 2021

Brokers

Allica Bank’s Q1 2021 Broker Survey results

5 minute read · 12 February 2021

Meet the team Culture Brokers

Meet Charissa Chang, Business Relationship Manager, North West at Allica Bank

4 minute read · 6 January 2021

SMEs Brokers

Asset Finance in 2021 – Market Outlook

4 minute read · 4 January 2021

Meet the team Brokers

Meet Brandon Hall, Senior Business Relationship Manager, Asset Finance at Allica Bank

3 minute read · 22 December 2020

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

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

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)

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

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

Criteria	Description
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Cost plan	Cosmetic: Higher of 15% of OMV, or £50,000 per property. Light: Higher of 50% of OMV, or £75,000 per property. Medium: Higher of 100% of OMV, or £100,000 per property.
Monitoring	Cosmetic and Light refurbishment to be monitored by our asset manager. Medium Refurbishment to be monitored by our QS.
Valuations	Full RICS valuation
Interest	Rolled. Rates are fixed and charged daily in arrears
Refurbishment type	Cosmetic: Works to improve speed of letting and compliance with regulations. Examples include redecoration, EPC improver works, compliance with utility regulations, boiler upgrades, modernisation. Light: As with Cosmetic, but higher cost plan. Medium: Loft conversions, reconfigurations, single story extensions, commercial to residential schemes.

Allica Bank’s latest commercial mortgage Broker Survey results

Meet Danny McMurdo, Business Development Manager, South West at Allica Bank

Brokercast: How brokers and banks can work together to stamp out fraud

Brokercast: how banks and solicitors can make doing deals more broker-friendly

Brokercast: Innovation in valuation, with Daniel Owen-Parr

Brokercast: How brokers and underwriters can collaborate for quick decisions

Allica Bank’s Q1 2021 Broker Survey results

Meet Charissa Chang, Business Relationship Manager, North West at Allica Bank

Asset Finance in 2021 – Market Outlook

Meet Brandon Hall, Senior Business Relationship Manager, Asset Finance at Allica Bank

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