Allica Commercial Mortgages at a Glance
Our Verdict
Allica is one of the strongest commercial mortgage options in the UK SME market in 2026. It pairs higher LTVs than most high-street banks, a relationship-led service model, and a published rate framework that lets you see in advance how your deal stacks up. For owner-occupiers buying their trading premises and landlords building specialist BTL portfolios, it should be on a serious shortlist.
The trade-offs are real. Arrangement fees of 1.5% to 2% are not the cheapest. Variable rate ERCs run for five years. Fixed rates carry swap breakage risk that can exceed the headline ERC if rates fall. None of this disqualifies Allica, but it shapes who it suits.
Best For
- SMEs buying or refinancing their own trading premises with at least two years of accounts
- Property investors needing 75% LTV on commercial investment or specialist BTL deals
- Care home, nursery and healthcare operators wanting a specialist underwriting team
- Borrowers who value a named relationship manager over a branch network
- Deals between £150,000 and £15m
Not Ideal For
- Loans below £150,000 or above £15m
- Start-ups or businesses with under two years of full financial accounts
- Buyers fixated on the lowest possible arrangement fee
- Borrowers wanting branch-based service or in-person meetings
- Properties of non-standard construction or outside England, Scotland and Wales
- Pure speculative land deals with no trading evidence
Key Facts
- Loan range: £150,000 to £15m (raised from £10m in April 2026)
- Maximum LTV: up to 80% owner-occupied (85% prime), 75% investment and specialist BTL, 70% healthcare and semi-commercial
- Term: 5 to 25 years standard, up to 30 years for experienced healthcare operators
- Owner-occupied variable rates: 2.90% to 4.30% over BoE base
- Specialist BTL fixed rates: from 5.80%
- Arrangement fees: 1.5% owner-occupied, 2% investment and specialist BTL
- DSCR: 130% standard commercial, 120% semi-commercial, 110% to 125% specialist BTL
- Up to 2-year capital repayment holiday on owner-occupied deals
- DIP within 24 hours, completion typically 4 to 6 weeks
- Trustpilot: 4.7/5 from 1,795 reviews
- Authorised by the PRA, regulated by the FCA and PRA, FRN 821851
What Are Allica Commercial Mortgages?
Allica is a UK challenger bank built specifically for established SMEs. Commercial mortgages are one of its core lines, alongside business current accounts and asset finance. By 2026 the bank has lent over £3.5bn into the SME market and reached unicorn valuation following its $155m Series D fundraise.
The proposition is narrow on purpose. Allica does not chase consumer mortgages, retail current accounts or international clients. It targets owner-occupiers and property investors operating in England, Scotland and Wales who want sharper LTVs and faster decisions than the high street usually offers.
How Allica Commercial Mortgages Work
You apply directly through allica.bank or via a broker on Allica’s Introducer Portal. A relationship manager is assigned at the point of enquiry, not after credit approval. That RM stays with the deal through underwriting, valuation and completion.
Loans are secured on the property by first legal charge. Allica writes deals from £150,000 to £15m, on terms of 5 to 25 years, with rates either variable (priced as a margin over the Bank of England base rate) or fixed.
Owner-Occupier vs Investment Mortgages
An owner-occupier mortgage is for the trading business that will occupy the property. The serviceability test focuses on the company’s profitability and debt cover, not rental income. Allica will lend up to 80% LTV here, rising to 85% for prime businesses with DSCR over 200%.
An investment mortgage is for a landlord buying or refinancing income-generating commercial property. Serviceability is judged on rental income relative to the mortgage payment. LTV is capped lower, at 75%, because the lender is exposed to tenant risk rather than your own trading.
Main Mortgage Options
- Owner-Occupied Commercial Mortgage for businesses buying their own premises. Up to 2-year capital repayment holiday available, useful for businesses funding fit-out alongside the purchase.
- Commercial Investment Mortgage for landlords on offices, retail, industrial and similar. Interest-only available for 5 to 10 years, or partial amortisation against a 25-year repayment profile.
- Specialist Buy-to-Let covering residential portfolios, HMOs and Multi-Unit Freehold Blocks. DSCR relaxed to 110% for standard rate taxpayers and 125% for higher rate.
- Healthcare Finance for care homes, children’s nurseries and medical settings. Dedicated specialist underwriting team. Terms up to 30 years for experienced operators, 20 years for first-time operators, up to 70% LTV.
- Semi-Commercial Investment Mortgage for mixed-use property. Schemes with under 20% commercial space are excluded. LTV is 60% to 70% depending on the residential allocation, with DSCR of 120%.
Allica Commercial Mortgage Rates and Fees
Interest Rates and Representative Costs
Allica publishes its variable rate margins, which is unusual in this market. As of April 2026, owner-occupied variable rates run from 2.90% to 4.30% over the BoE base rate. Semi-commercial variable rates run from 2.10% to 3.50% over base, narrower if the residential element is larger. Specialist BTL fixed rates start at 5.80%.
Allica also publishes four discounts that stack against your headline rate:
- 0.25% reduction if the property has an EPC rating of A, B or C
- 0.25% reduction on loans above £750,000
- 0.25% reduction if your DSCR is over 200%
- 0.25% reduction if you hold an Allica business current account
These add up. A profitable business buying an EPC B office above £750,000 with an Allica current account can knock 0.75% off the starting margin before the credit decision is finalised. That is a meaningful saving over a 25-year term.
Arrangement, Valuation and Legal Fees
Arrangement fees are 1.5% on owner-occupied deals and 2% on commercial investment and specialist BTL. On loans below £3m total, the arrangement fee can be added to the loan rather than paid upfront, which preserves working capital but raises the effective LTV.
You also pay for the RICS valuation and for legal fees on both sides, yours and Allica’s. Costs are case-by-case and scale with property value and complexity. A simple single-let office will cost meaningfully less than a portfolio refinance with a Red Book valuation across multiple sites.
What Affects Your Rate
Your priced margin moves on a small number of variables: LTV requested, the DSCR or ICR your trading or rental income produces, EPC rating, loan size, current account relationship, sector risk (a pub is priced harder than an industrial unit) and the trading record on the file. Allica’s discount framework gives you visibility on most of these before submission, which makes it easier to model the deal in advance than with most banks.
Allica Commercial Mortgage Eligibility
Who Can Apply
Allica lends to limited companies, LLPs, partnerships, sole traders, SPVs and NewCos (typically used for property investment vehicles). The minimum trading history is two years, evidenced by full financial accounts. Start-ups and businesses without a settled accounting record are not the target customer.
Property Types, LTV and ICR Requirements
Acceptable property types include standard offices, industrial units, retail, professional practices, warehouses, mixed-use, care homes, nurseries, hotels, guest houses, pubs, restaurants, convenience stores, HMOs and MUFBs. Properties must be in England, Scotland or Wales.
Excluded: non-standard construction, property outside the UK, and speculative land without trading accounts behind it.
LTV caps depend on the product:
- Owner-occupied: up to 80%, rising to 85% for prime businesses with DSCR over 200%
- Commercial investment: up to 75%
- Specialist BTL (HMO and MUFB): up to 75%
- Healthcare: up to 70% of Market Value or Vacant Possession value
- Semi-commercial: 60% to 70% depending on the residential proportion
DSCR (Debt Service Coverage Ratio) is how the lender checks you can afford the payments. In plain terms, it asks: for every £1 of mortgage payment, how many pounds of net operating income do you generate? Allica wants 130% on standard commercial deals, meaning £1.30 of income for every £1 of payment. Variable rate deals are stress-tested at 1.5% above the current BoE base rate, so the income must still cover the payment if rates rise. Semi-commercial requires 120%, specialist BTL 110% for standard rate taxpayers and 125% for higher rate.
If your numbers are tight, this is the line your deal will live or die on. A landlord with a strong rent roll but only 115% DSCR will not get a standard commercial deal through.
Trading History, Credit Assessment and Personal Guarantees
You will need a minimum of two years of full accounts. Loans above £1.5m also require quarterly management accounts. Allica’s underwriters look at trend, not just the latest year — a falling profit line will be questioned even if the headline numbers cover the DSCR.
Personal guarantees are required where the loan exceeds 70% of Vacant Possession value. In practice, directors of limited companies are usually asked for PGs even on lower LTVs. Take this seriously: a PG puts your personal assets in the line of fire if the deal goes wrong, and it is non-negotiable on the higher-LTV products.
Allica Commercial Mortgage Application Process
How to Apply
Two routes. Direct through allica.bank, where a relationship manager is assigned immediately on enquiry. Or through a broker who uses Allica’s Introducer Portal. Brokers tend to add value on more complex deals: multi-property refinances, semi-commercial schemes, healthcare cases where structuring matters.
Decision in Principle is typically returned within 24 hours, based on a high-level assessment of the deal, the borrower and the property.
Valuation, Documents and Checks Needed
You will be asked for:
- Completed application form
- Last two years of statutory accounts or tax returns
- Quarterly management accounts (loans above £1.5m)
- Proof of deposit funds and source
- Owner and director ID and address verification
- Property details, lease information and tenant schedule for investment deals
A RICS valuation is mandatory and instructed by Allica from its panel. You pay for it, but Allica controls the panel. On healthcare, expect a specialist valuer with sector experience, not a generalist commercial surveyor.
Underwriting and Completion Times
Once the valuation lands and legals are running, Allica targets 4 to 6 weeks to completion. That assumes your solicitor is responsive and the property has no unusual title issues. The bank’s side of the process is consistently faster than most high-street competitors, but the clock is rarely held up only on the lender.
Allica Commercial Mortgage Repayments and Flexibility
Repayment Terms and Interest-Only Options
Standard terms run 5 to 25 years. Owner-occupied deals can extend to 25 years; healthcare reaches 30 years for experienced operators and 20 years for first-time entrants.
Interest-only is meaningful here. On commercial investment mortgages you can take interest-only for 5 to 10 years, or run partial amortisation against a 25-year repayment profile. Owner-occupiers get something different: up to 2 years of capital repayment holiday at the start of the term, which is genuinely useful if you are funding the property and a fit-out simultaneously and need the early cash flow to absorb the build.
Early Repayment Charges and Refinancing
On variable rate loans, ERC is 3% during the first five years, with 10% overpayment allowed each year without penalty. After year five the ERC drops away.
Fixed rates work differently. Allica applies a sliding scale of 5%/4%/3%/2%/1% from year one to year five. But there is a clause buyers often miss: if swap rates have fallen since the deal was struck, Allica can pass swap breakage costs to the borrower instead of the standard ERC, and breakage can be higher.
In practice this means the published 5% ERC is a floor, not a ceiling, on a fixed deal. If you took a 5-year fix at 6%, rates fell sharply, and you wanted to redeem in year two, the swap break could land well above 5% of the loan. It is the single most expensive mistake people make on commercial fixed rates. If there is any prospect of selling or refinancing inside the fix, the variable product or a shorter fix is usually safer.
Allica Commercial Mortgage Customer Reviews
What Customers Like
Allica scores 4.7/5 on Trustpilot from 1,795 reviews as of April 2026, “Excellent” by Trustpilot’s banding. The pattern of praise is consistent. Customers name their relationship managers in reviews, which is rare in commercial banking and signals a service model that is actually being delivered. Onboarding is described as frictionless. Speed of decision is repeatedly cited as the differentiator against high-street incumbents.
Common Complaints
The complaint pattern is narrow. Where reviews are critical they tend to mention strict underwriting on edge cases: applicants whose accounts had a soft year, or property types sitting near the boundary of what Allica accepts. A few reviewers mention valuation costs higher than expected, which is more about the panel valuer’s pricing than Allica’s process. There is no widespread thread of complaints about hidden charges or post-completion treatment.
Allica Support and Regulation
Customer Support
Support is delivered through the assigned relationship manager during the deal and through Allica’s business banking team afterwards. There is no branch network. Phone and online channels are the route in. The relationship-manager model is where Allica’s service reputation comes from, and it is the practical answer to “who do I call when something goes wrong” — you call the named person on your file.
Regulatory Status and Complaints
Allica Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and PRA. Firm Reference Number: 821851.
Commercial mortgage lending is not FCA regulated for consumer protection purposes. This is true across the entire sector, not specific to Allica. FSCS deposit protection up to £85,000 applies to deposit accounts only, not to lending products. Complaints follow Allica’s published procedure first, with escalation routes through the Financial Ombudsman Service where eligibility allows.
Allica vs Alternatives
Allica vs Barclays Commercial Mortgages
Barclays runs a much larger lending book and will write commercial mortgages with no fixed upper ceiling, useful for institutional borrowers, large hotel groups or cross-border deals. Headline rates start in the region of 5%, broadly comparable to Allica’s higher band. Decisions take longer and the relationship model is less consistent. For an owner-managed SME doing a £1m to £10m deal, Allica is usually faster, more flexible on LTV, and easier to navigate. Barclays wins where size, cross-border complexity or FTSE-tier balance sheets are involved.
Allica vs HSBC Commercial Mortgages
HSBC is the strongest option if you need an internationally-aware lender: overseas income, foreign-domiciled directors, cross-border collateral. Rates start around 5%. The hard cap is LTV: HSBC tops out at 70% on commercial property, where Allica goes to 75% on investment and 80% on owner-occupied. For a UK-based SME buying a UK trading property, Allica’s higher LTV often makes the deal viable where HSBC cannot match. HSBC remains the better fit for international borrowers and for businesses already integrated into HSBC’s global cash management.
Allica vs Cambridge and Counties Bank
Cambridge and Counties is Allica’s nearest direct challenger. Both target SME commercial mortgages, both run a relationship model. The differences in 2026 are concrete: Allica’s maximum loan is now £15m versus Cambridge and Counties’ £10m, Allica reaches 80% LTV on owner-occupied versus 70%, and Allica’s Trustpilot is 4.7/5 versus 2.8/5. On most measures Allica is the stronger choice. Cambridge and Counties remains relevant where its team has specific sector comfort or relationship history with the borrower.
Final Verdict: Are Allica Commercial Mortgages Worth It?
Yes, for the borrower Allica is built for. If you are an established UK SME with two or more years of clean accounts, buying or refinancing a trading property between £150,000 and £15m, Allica should be on the shortlist. The combination of higher LTVs than the high street, a published rate framework you can model in advance, a named relationship manager, and consistent 4 to 6 week completion times is genuinely competitive.
The reasons to look elsewhere are equally clear. If you need under £150,000, over £15m, or a deal outside England, Scotland or Wales, Allica is not the lender. If you want the cheapest possible arrangement fee, you may save 0.5% to 1% with a building society or specialist broker on a simple low-LTV deal. If you might want to redeem a fixed rate early, the swap breakage clause is a serious risk to model before signing.
For most owner-managed businesses making a strategic property purchase in 2026, Allica is the bank that will say yes faster, lend higher, and keep one person accountable for your deal. That is worth paying a market-rate arrangement fee for.
Frequently Asked Questions
What is the maximum loan size for an Allica Commercial Mortgage?
The maximum is £15m, raised from £10m on 28 April 2026 for commercial investment, specialist BTL, healthcare and growth finance. The minimum is £150,000.
What LTV can I get on an Allica Commercial Mortgage?
Up to 80% on owner-occupied (rising to 85% for prime businesses with DSCR over 200%), 75% on commercial investment and specialist BTL, 70% on healthcare, and 60% to 70% on semi-commercial depending on the residential mix.
Are Allica Commercial Mortgages FCA regulated?
Allica Bank Limited is authorised by the PRA and regulated by the FCA and PRA, FRN 821851. Commercial mortgage lending itself is not within the FCA’s consumer protection regime. This is standard across the sector and applies to every UK commercial lender. FSCS protection up to £85,000 covers deposits only.
How long does an Allica Commercial Mortgage take to complete?
Decision in Principle is usually returned within 24 hours. Completion typically follows in 4 to 6 weeks once the valuation is instructed and legals are running. Timelines slip mainly on solicitor responsiveness and title issues, not Allica’s underwriting.
What are the early repayment charges on an Allica Commercial Mortgage?
On variable rate loans, ERC is 3% during the first five years, with 10% overpayment allowed each year without penalty. On fixed rate loans, ERC is a sliding scale of 5%/4%/3%/2%/1% from year one through year five. If swap rates have fallen since inception, Allica can pass swap breakage costs instead, which can exceed the standard ERC. Model this carefully before fixing if early redemption is plausible.
Does Allica lend on healthcare properties?
Yes. Allica has a dedicated healthcare finance team covering care homes, children’s nurseries and medical settings. Loan terms reach 30 years for experienced operators and 20 years for first-time operators, with LTV up to 70% of Market Value or Vacant Possession value.