Allica Bank has refreshed its owner-occupier mortgage appetite as it looks to help established SMEs borrow while retaining more capital for growth.

The lender has also launched a limited-time 0.5% cashback offer on completed loans, with applications open from 26 November 2025 to 31 March 2026 and completions required by 30 June 2026. Its usual £500 commitment fee will be waived during the period.

Key changes include an extension of the maximum loan term to 30 years, a new 5-year interest-only period on loans up to 75% LTV, and an increased maximum LTV of 80% for firms in accountancy, veterinary, architecture, property surveying and selected industrial and warehousing sectors.

Allica said the enhancements are designed to give growth-focused SMEs greater headroom at a time when traditional banks have pulled back from the sector.

Its own research this year identified a £65bn SME lending gap, while analysis of its 2024 lending showed support for more than 84,000 jobs, a £5.8bn contribution to UK GDP and £1.4bn in tax revenue.

FEELING THE SQUEEZE

Nick Baker (main picture), Allica Bank’s chief commercial officer, said: “Right now, many business owners are feeling the squeeze of high costs and limited access to finance.

“They’re ambitious and ready to grow, but too often, the funding they need just isn’t there.

“That’s where the broker community is so vital – helping those businesses navigate their options and find the finance that fits.”

CASHBACK OFFER

And he added: “At Allica, we believe banks have a crucial role to play too. By expanding our mortgage parameters and introducing new, flexible options – from longer terms to interest-only periods – we’re giving established businesses the confidence and headroom to invest in their future.

“As a bank that rewards its customers, I’m pleased too we’ll be offering cashback and waiving our commitment fees for the next few months. We want to make a tangible difference for brokers and their clients. I hope today’s changes show we really mean that.”