Allica Bank has expanded its commercial mortgage proposition by entering the specialist buy-to-let residential market.
The bank said it has made the move in response to broker feedback and the growing demand for specialist property finance.
It has set a target of £100 million in specialist buy-to-let mortgage offers before the end of the year.
Allica will offer funding for residential buy-to-let property portfolios, houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).
Brokers can secure up to 75% LTV on loans from £250,000 to £10 million with pricing from 5.80% fixed. Discounts will be applied to larger loans or energy-efficient properties and debt service cover ratios (DSCR) have been set lower than the rest of the term commercial investment mortgage range at 110% or 125% for higher-rate taxpayers.
Nick Baker (pictured), chief commercial officer at Allica Bank, said: “Our job has always been to listen to what our brokers are saying and provide a proposition that meets their needs and those of the established SMEs that they serve.
“The introduction of specialist buy-to-let mortgages is in direct response to market demand and we have set ourselves a hefty target of £100 million before the end of the year, a target we have hefty desire to significantly exceed.”
