Allica Refreshes Owner-occupier Mortgage Appetite to Back Growing Businesses and Launches Mortgage Cashback Offer

Allica Bank, the business bank dedicated to established SMEs, is today expanding its owner-occupier mortgage appetite to enable businesses to borrow while keeping more capital in the business.

To mark the launch of the updates, it has introduced a limited-time cashback offer, which will see eligible customers receive 0.5% cashback on the loan amount (excluding fees) for applications submitted between November 26th 2025 and March 31st 2026, and completed by June 30th 2026. It will also waive its usual £500 commitment fee during this application period.

Allica’s new owner-occupier mortgage appetite expansion includes an increase in its maximum loan term to 30 years and the introduction of a five-year interest-only period at the start of their agreement on loans up to an LTV of 75%.

It will also be increasing its maximum LTV to 80% for businesses in the accountancy, veterinary, architecture, property surveying, and select industrial and warehousing sectors.

The changes are designed specifically to support growth-minded businesses, giving them access to extra capital and greater headroom. It comes following a report by Allica earlier in the year which revealed that a £65 billion lending gap had emerged in SME finance due to traditional banks pulling back from the sector.

A recent report by Allica Bank revealed the importance of SME lending to economic growth in the UK. It highlighted that Allica’s lending to established SMEs in 2024 alone had supported over 84,000 jobs, contributed £5.8 billion to UK GDP, and generated £1.4 billion in tax revenue.

Allica Bank’s Chief Commercial Officer Nick Baker 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.

“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.”