As we near to the end of the year and monetary targets are looming, I wanted to take a moment to refresh you on our semi commercial investment offering, focusing primarily on pricing and speed.
Why choose Allica?
Service/Speed – Allica Bank have an average SLA of 3-5 working days on new applications. Once approved, we instruct valuation and legals day 1. We use VAS panel for valuations, and their valuers tend to visit the security within 10 days. We also offer title indemnity insurance for all refinances and purchase transactions up to £1.5m at 60% LTV or below, which dramatically speeds up the legal process. Additionally, if you have any urgent transactions, we have a list of solicitor firms that we have worked with in the past and understand our legal process and requirements. < Sols Panel link >
Pricing – Semi commercial pricing starts from 5.55% with a 2% arrangement fee (1.5% is paid to the broker)
Discounts – 0.25% discount available for all loans over £750k or A-C EPC rating.
Myth buster: Floor space, value or rental?
At Allica Bank, semi commercial is defined by floor space. If at least 50% of the floor space is residential, we price on semi commercial. Interestingly, we are not restricted by one asset, the floor space can be split across multiple assets within a mixed portfolio. For example, if a client has a mixed portfolio of HMOs, MUFBs, single BTLs, semi commercial and commercial, we can price on semi commercial pricing if the overall floor space is 50% residential. This is a great way to bypass high commercial rates and keep all of a client’s asset with one lender, simplifying ERCs and product switches.
Other key benefits
- Interest only available.
- 120% DSC requirement reduced from 130%.
- Flexible approach to PGs.
- Rate discounts available for variable and fixed rates.
Case study: Semi commercial investment mortgage
- Loan: £1,425,000
- Client: Experienced landlord with a mixed-use portfolio.
- Purpose: Refinance of a mixed-use portfolio on to a lower rate.
- Originally submitted as a single semi commercial asset. Following valuation unfortunately the residential floor space was less than the commercial. The client added an unencumbered BTL to the deal to give us over 50% residential floor space. This improved the rate as we were now pricing on semi commercial, and the LTV was lower.
- Large loan discount applied, and no PG required given low LTV.
I’d be delighted to chat through any cases you’re working on and explore how Allica can support your clients’ funding needs.
David Johnston Business Development Manager david.johnston@allica.bank