Allica Bank has launched two bridge-to-term products that last up to seven years.
The deals start as a bridging agreement and then proceed to a cheaper loan when the agreed conditions are met.
They are designed to support projects that do not yet meet commercial mortgage criteria and borrowers that perform renovations.
Borrowers only have to apply once and pay a single valuation and application costs, which reduces uncertainty and costs, says the lender.
They can also choose to release equity when the loan turns to a term product if they have to invest further in the project.
Brokers are paid on the committee, both at Origination and the Trigger Point.
There are two variations of the product.
The stabilizer:
Designed to help companies meet commercial mortgage criteria over time, with loans from £ 250,000 to £ 5 million.
The rates start from the basic percentage + 6.45% during the bridging phase.
The improver:
Designed for renovations, in particular those who improve the environmental references of a home.
Loans vary from £ 500,000 to £ 5 million, with rates of basic rate + 7.05% during the bridging phase.
In both cases, borrowers switch to commercial mortgage interest from basic rate + 2.9% for owners and basic rate + 4.45% for investors.
Allica Chief Commercial Officer Nick Baker says: “By combining Bridging and Term loans in a single streamlined journey, we help established companies quickly and confidently on their ownership plans – without the usual delays, reimbursements or duplicate insurance.
“This launch is the result of considerable work of our team and close cooperation with our broker’s community.“
Last year Allica acquired bridging gender Tuscan capital.