Allica Bank scraps arrangement fees on borrowing over £750k for limited time to boost business growth
Allica Bank, the challenger business bank, today announces it is waiving arrangement fees on commercial mortgages of £750,000 and above for a limited time, to help brokers to further support the growth of established businesses, helping business owners keep more of their money to invest back into growth.
Arrangement fees will be waived on owner-occupier mortgages of £750,000 and above, commercial investment mortgages of £750,000 and above, and specialist buy-to-let mortgages of £1.5m and above for all new eligible applications submitted between 7th July 2026 and 30th September 2026. It is a move which could save business owners from £11,250 to as much as £300,000 (on a £750,000 owner-occupier mortgage and a £15m commercial investment mortgage, respectively).
Additionally, Allica is making further changes to its commercial mortgages proposition. This includes increasing the maximum amount it will lend against a property’s value to 77.5% on commercial mortgages of £3m and above, allowing brokers to help borrowers access bigger loans with a smaller deposit.
Allica will also now consider lending up to £5m on commercial properties with a single tenant – up from the previous £2 million cap – and where the tenant has at least five years left on their lease.
The announcement follows wide ranging reductions in rates on owner-occupied and commercial investment mortgages just last month and reflects Allica Bank’s ongoing commitment to its broker partners, helping them to boost the established businesses across the country that are so key to the UK’s economic success.
Nick Baker, chief commercial officer at Allica Bank, said: “Brokers play a key role in supporting established businesses’ growth ambitions, and they have told us they need more support when it comes to larger, more complex commercial mortgages, especially where clients are weighing up significant upfront costs and tighter lending criteria.
“At Allica, our ambition is to empower brokers to support the businesses they work with, and these changes are designed to do that. By waiving arrangement fees on bigger loans, we are helping established businesses, the backbone of the UK economy, hold on to more of their money so that they can continue to invest in their future.
“At the same time, increasing our loan to value and widening our appetite is about giving brokers more flexibility to structure borrowing that actually works in the real world.”