Allica Bank has increased the maximum LTV criteria for its refurbishment bridging product.
The changes will mean businesses can borrow more than before and will be able to drawdown the full amount from day one.
The LTV increase follows a pricing reduction Allica made to its residential bridging product range in January. It coincided with the bank rebranding its bridging division to Allica from Tuscan Capital, which it acquired in September last year.
In light of the changes, Allica can now support refurbishment bridging loans of up to 85% for residential properties and 80% for semi-commercial properties. Funding will be capped at 75% of the post works value for residential and 70% for semi-commercial.
Allica’s refurbishment bridging loans can be used to support experienced property professionals for light to medium-scale refurbishments, including EPC improvements, internal reconfigurations and change-of-use projects.
By allowing full drawdown of the loan on day one, it gives businesses the freedom to use the funding without costly residual valuations or the hefty administration involved in drawdowns. A panel valuer will assess the property's value before and after refurbishment, but no quantity or monitoring survey is required.
The new refurbishment product is available at rates starting from 0.95% per month with interest rolled for up to 18 months. It supports projects requiring funding from £150,000 to £2,000,000 in England, Scotland and Wales.
Justin Trowse, head of sales for bridging finance at Allica Bank, commented: These latest changes to our bridging proposition reflect Allica’s ongoing efforts to become a true break-out bridging lender. We know how much brokers and their clients value freedom and flexibility, and these changes are designed to provide exactly that.
“We are always actively engaging with our broker community to understand their and their clients’ needs, and it’s on the back of their feedback that we prioritised these changes. There’s plenty more on the way!”
