Allica Bank has entered the specialist buy-to-let (BTL) market with a target of £100m in offers by the end of this year.
Expanding on its existing commercial mortgage proposition, Allica Bank will lend up to 75% loan to value (LTV) through its specialist BTL range.
The lender said the launch came following feedback from brokers and demand for specialist property finance. The products will be open to residential BTL portfolios, houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).
Loan sizes between £250,000 and £10m will be available, with fixed rates starting at 5.8%. Discounts will be applied to larger loans or energy-efficient properties, and debt service cover ratios (DSCRs) are lower than its term commercial investment range at 110% or 125% for higher-rate taxpayers.
Nick Baker (pictured), chief commercial officer at Allica Bank, said: “Our job has always been to listen to what our brokers are saying and provide a proposition that meets their needs and those of the established SMEs that they serve.
“The introduction of specialist BTL mortgages is in direct response to market demand, and we have set ourselves a hefty target of £100m before the end of the year, a target we have [a] hefty desire to significantly exceed.”
Market Moves
Sponsored by Halifax Intermediaries
Last year, the lender reported it had passed the £3bn lending milestone after it entered the bridging sector through its acquisition of Tuscan Capital.
