Allica Bank Launches Bridge-to-Term Product to Offer Greater Certainty to Owner Occupiers and Commercial Property Investors

Allica Bank – the challenger bank built specifically for established SMEs – has today announced the launch of its new bridge-to-term position, offering borrowers a single seven-year loan product with an initial bridging agreement that automatically shifts to a lower-cost term loan when agreed conditions are met.

This marks the bank’s first major shake-up of the commercial bridging market since it entered the sector last year. The new offering is specifically designed to support borrowers with projects that don’t yet meet term commercial mortgage criteria or those doing property refurbishments. Borrowers start with bridging loan pricing before transitioning to term mortgage pricing once agreed trigger conditions are met.

Borrowers will only need to apply once and pay one application and valuation fee, cutting admin, reducing uncertainty and costs, and ensuring they access more affordable finance as soon as possible.

Borrowers can also choose to release equity at the trigger stage for further investment. Brokers will be paid commission both at origination and the trigger point. 

The launch comes following the news that Allica posted a record month for its bridging finance team in April, which saw its highest level of lending and new introductions since Allica acquired Tuscan in August last year.

The products – two tailored solutions

Allica is launching two bridge-to-term products – the ‘Stabiliser’ and the ‘Improver’ – for both owner-occupiers and commercial property investors. Each can run for up to seven years, with an initial bridging period of up to two years. 

• The Stabiliser: Designed to help businesses meet commercial mortgage criteria over time, with loans from £250,000 to £5 million. Rates start from BBR + 6.45% during the bridging phase.

• The Improver: Tailored for refurbishments, especially those enhancing a property’s environmental credentials. Loans range from £500,000 to £5 million, with rates from BBR + 7.05% during the bridging phase.

In both cases, borrowers transition to commercial mortgage rates from BBR + 2.90% for owner-occupiers and BBR + 4.45% for investors. 

Nick Baker, Chief Commercial Officer at Allica Bank, said “we’re proud to launch Allica’s new bridge-to-term proposition – a truly innovative way to give brokers and borrowers the certainty they need in a changing market. By combining bridging and term lending into a single, streamlined journey, we’re helping established businesses act quickly and confidently on their property plans – without the usual delays, fees, or duplicate underwriting. 

“This launch is the result of significant work from our team, and close collaboration with our broker community. It’s a major step forward in our ambition for Allica to become a break-out bridging lender.”