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Allica Bank cuts buy-to-let rates and expands commercial investment criteria. Allica Bank, the challenger business bank, today announces a series of enhancements across its commercial mortgage range designed to give brokers even greater confidence when supporting the UK's established businesses. Introduced in direct response to feedback from brokers, the changes include reduced rates across Allica's specialist buy-to-let range, appetite to support for first-time commercial landlords, a new offering for expat borrowers and a brand-new healthcare investment proposition. The healthcare updates now enable lending against select residential care properties on an investment basis, alongside Allica's existing support for owner-operators, further strengthening its presence in a resilient sector where investor demand for long-term, income-backed assets remains strong. Allica will now also consider first-time landlords for commercial investment mortgages with a maximum LTV 10% lower than standard, and where the property has at least 25% residential use and a professional management agent is in place. In addition, the bank has also reduced rates across its specialist buy-to-let range by 0.25%, reinforcing its commitment to brokers to navigate pricing-sensitive transactions. For expat borrowers, Allica has enhanced its commercial investment and bridging proposition to extend its appetite for companies where ownership is based outside of the UK. Together, these changes reflect Allica's ongoing commitment to meeting the needs of brokers and established businesses in the UK - ensuring they have the flexibility and support needed to thrive. The announcement follows a landmark year for the bank, which saw it valued at $1.2 billion after closing a £155 million Series D funding round in February 2026, as well as announcing record results for 2025, including total lending reaching £3.7 billion. Allica says it has remained committed to supporting brokers and listening to their feedback. In a 2025 survey of more than 1,000 of the bank's broker partners, 89% rated their experience with the bank as excellent or good. Nick Baker, Chief Commercial Officer at Allica Bank, said: "These changes are rooted in one clear principle: listening to its broker partners and understanding what established businesses really need from their bank. Established businesses are the backbone of the UK economy, but too often they are held back by rigid lending criteria or a lack of specialist expertise. By giving brokers greater flexibility, Bridging Loan Directory can help more business owners access the funding they need to invest, adapt and grow. At Allica, its focus is on building a pragmatic, relationship-led proposition shaped by what brokers tell Bridging Loan Directory their clients need - not by what banks assume they need."

Arc & Co. completes £4.6m commercial finish and exit bridging loan in Essex. Arc & Co. has successfully arranged a £4.6m finish and exit bridging loan for a commercial development in Basildon, Essex, comprising office space and industrial units. The facility was provided by Allica Bank at 65% loan-to-value. It enables the borrower to refinance their incumbent development lender and provides the capital required to finish the scheme and stabilise the asset. The transaction was led by Arc & Co. Director Tom Berry and completed within one month of instruction. To structure the deal successfully, the team navigated the limited market appetite for 100% commercial, incomplete schemes. By partnering with Allica Bank, Arc & Co. secured a solution that gives the borrower the necessary window to achieve full occupancy. Tom Berry, Director at Arc & Co., commented: "It was a pleasure working with Allica on this case. The Allica team was intrinsic to the process. The proposal was slightly challenging, considering the property was completely commercial and required a combination of funds to finish the scheme and time to stabilise. Allica understood the proposal and acted quickly to ensure the client could repay their current development lender in full and have time to continue the scheme." Stephen Palfreeman, Head of Sales (bridging) at Allica Bank, added: "I'm delighted to have completed another loan with Tom and the team at Arc & Co, delivering the refinance within just one month of instruction. Tom was fantastic throughout, driving communication effectively between all parties to ensure a smooth and efficient process. This transaction highlights its continued appetite for commercial real estate lending and its commitment to giving borrowers the time and flexibility to stabilise assets before transitioning to long-term finance." Key contributions to the transaction included Charlie Runcorn at Eightfold, who handled the valuation, and legal support from Jonathan Walker. With the funding secured, the borrower now has a six-month window to finish the build and fully occupy the property before transitioning to long-term debt.

Allica Bank named most recommended business bank as fintech unicorn momentum builds. Allica Bank has been named the UK's most recommended business bank in the 2026 UK banking & finance awards, underlining its rapid ascent as one of britain's most prominent fintech challengers. The recognition, awarded by RFI Global, is based entirely on feedback from more than 4,000 UK businesses, offering a direct measure of customer satisfaction in a sector increasingly shaped by competition from digital-first lenders. The accolade marks a significant milestone for Allica Bank, which has positioned itself as a specialist lender to established small and medium-sized enterprises (SMEs), typically those employing between five and 250 people. Chief executive Richard Davies said the award reflected the bank's core strategy of focusing on underserved mid-sized businesses. "Our ambition has always been to be the most recommended business bank in the UK, so this recognition from our customers is incredibly meaningful," he said. "It shows we're building something that genuinely works for established businesses." The recognition comes at a time of strong momentum for Allica, which was recently valued at close to $1.2 billion following a $155 million Series D funding round, securing its status as one of the UK's latest fintech unicorns. Since securing its banking licence in 2019, the lender has expanded rapidly by combining proprietary technology with relationship-led banking, a hybrid model aimed at differentiating it from both traditional high street banks and purely digital competitors. Davies said the bank is continuing to invest heavily in its core product suite, including current accounts, savings and lending. "We're building a business bank that is more helpful, more integrated and more powerful than ever before," he added. Allica's growth strategy has focused on addressing structural gaps in SME finance, particularly around access to flexible lending products. The bank recently launched a business overdraft offering aimed at improving cashflow management for SMEs, at a time when access to overdraft facilities has declined sharply. Industry data shows overdrafts now account for just 5% of SME lending, down from 31% in 1998, highlighting a significant contraction in traditional bank support. This retrenchment by larger lenders has created an opportunity for challenger banks to capture market share, particularly among established SMEs that require more tailored financial solutions. Research from Oxford Economics suggests Allica's lending activity is already having a measurable impact on the wider UK economy. In 2024, the bank's financing supported more than 84,000 jobs and contributed £5.8 billion to UK GDP. For every £1 million in loans issued, the analysis indicates the bank generated £2.4 million in economic output, alongside 35 jobs and £600,000 in tax revenues. Davies emphasised the importance of this segment, noting that established SMEs account for roughly a third of UK employment and economic output. "They need a banking partner that understands their needs and supports their growth," he said. Allica's rise reflects a broader shift in SME banking, where challenger institutions have steadily eroded the dominance of traditional lenders by offering more flexible products, faster decision-making and technology-driven services. With customer recommendation now a key differentiator in a crowded market, the award signals growing trust among business customers - an area where legacy banks have often struggled in recent years. As competition intensifies and SMEs continue to navigate a complex economic environment, lenders that combine digital capability with sector-specific expertise are likely to play an increasingly central role in supporting UK business growth. Jamie young. Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting. Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops. When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders. March 19, 2026