Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Allica Bank Waives Arrangement Fees on Selected Large Mortgages
Allica Bank has announced it will scrap arrangement fees on certain commercial borrowing products for a limited period. The waiver applies to owner-occupier mortgages and commercial investment mortgages of £750,000 and above, as well as specialist buy-to-let (BTL) mortgages of £1.5 million and above, for all new eligible applications submitted until 30 September 2026.
According to Allica Bank, this move could result in savings ranging from £11,250 on a £750,000 owner-occupier mortgage to £300,000 on a £15 million commercial investment mortgage. The offer is available only for a limited time and applies to new applications that meet the specified criteria.
The bank has also increased its lending cap on commercial properties with a single tenant from £2 million to £5 million. To qualify, tenants must have at least five years remaining on their lease.
Additionally, Allica Bank is making changes to its commercial mortgage proposition. The maximum loan-to-value (LTV) ratio will be increased to 77.5% on commercial mortgages of £3 million and above.
These changes may be relevant to UK letting agents and inventory clerks working with clients seeking large-scale commercial or specialist buy-to-let finance, particularly those managing properties with single tenants or high-value portfolios.
Source: Mortgage Solutions