Allica Bank launches two seven-year-old bridge maturity products.
Transactions start with a bridge agreement and then transfer to a low-cost loan when the terms of consent are met.
They are designed to support projects for borrowers who have not met commercial mortgage standards and undergo renovations.
The lender said the borrower only needs to apply once, pay a valuation and application fee, reducing uncertainty and costs.
If the loan requires further investment in the project, they can also choose to issue equity.
Brokers will receive commissions on origin and trigger points.
There are two variants of the product.
Stabilizer:
Designed to help businesses meet commercial mortgage standards over time, loans range from £250,000 to £5 million.
Interest rate starts at the base rate +6.45% at the bridge stage.
Improver:
Designed for renovations, especially those who enhance the property environment certificate.
Loans range from £500,000 to £5 million, with base interest rates + 7.05% fees in the bridging phase.
In both cases, the base rate for the borrower’s owner resident + 2.9% and the base rate for the investor + 4.45%.
“By combining bridging and semester loans, we can help established businesses take action on their property plans quickly and confidently – without the usual delays, expenses or duplicate underwriting.
“This launch is the result of a significant work of our team and works closely with our broker community.transparent
Last year, Allica acquired the Bridge Tuscan Capital.
