Allica Bank has doubled its maximum commercial mortgage loan size from £5m to £10m as it aims to provide more support for business owners.

The move is the largest percentage increase in the fintech challenger bank’s history.

Allica confirmed that the new £10m limit will cover both single loans and the combined value of multiple loans to the same customer.

It follows Allica forecasting in 2022 that the bank would complete an additional £3bn of lending between then and 2024. Allica also launched a 10-year fixed rate mortgage towards the end of 2022, along with a blanket reduction in rates across all of its variable rate loans.

Furthermore, the bank has announced plans to offer more financial support to the care home market with significant enhancements to its care home policy, including a reduction in debt service thresholds for both first-time buyers and experienced operators. Allica is also expanding its asset classes to cover specialist care assets including residential care for children, as well as adults.

The increase in Allica’s maximum commercial mortgage loan limit and its care home product enhancements both directly follow feedback gathered in its broker survey in Q4 2022.

Chief commercial officer at Allica Bank, Nick Baker, commented: “We understand that 2023 will be a critical year for many SMEs. That’s why it’s key that banks continue to work closely with brokers to ensure they are best serving the needs of these businesses and adapting their product offerings to meet changing demand.

“These enhancements were designed in line with the feedback our broker community gave us as to how we can help even more of their clients. We expect to see plenty more coming over the rest of the year.”

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