Allica Bank has entered the specialist BTL market, setting a target of raising £100m before the end of the year.
In response to broker demand, the challenger bank that targets SMEs is making available products to help with funding needs around residential BTL property portfolios, HMOs and MUFBs.
Loans ranging from £250,000 to £10m will be available with pricing from 5.80% fixed, on up to 75% LTV.
Discounts will be applied to larger loans or energy-efficient properties and debt service cover ratios (DSCR) have been set lower than the rest of the term commercial investment mortgage range at 110% or 125% for higher-rate taxpayers.
“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,” said Nick Baker, CCO at Allica Bank (pictured above).
“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!”
