**

Allica Bank, the UK challenger bank focused on SMEs, has launched a new bridge-to-term loan product designed specifically for owner-occupiers and commercial property investors. This innovative offering aims to simplify and streamline the financing process for those seeking short-term funding to bridge the gap between acquiring a property and securing longer-term financing. This move significantly strengthens Allica Bank's position within the competitive commercial real estate finance market and offers a valuable solution to a common challenge faced by property investors.

Bridging the Gap: A Solution for Short-Term Property Financing Needs

The property market, particularly within the commercial sector, often requires quick, decisive action. Securing the right property at the right price can be a race against time. Traditional mortgage lenders often have lengthy processing times, leaving investors in a precarious position if they can’t access funds quickly. This is where Allica Bank's new bridge-to-term loan steps in. This product provides a flexible and efficient solution for bridging the financing gap, offering investors a crucial lifeline to complete their acquisitions without missing out on lucrative opportunities. The product is designed to cater to both owner-occupiers, looking for short-term financing for renovations or developments, and commercial property investors, seeking interim finance while securing longer-term mortgages or refinancing options.

Key Features of Allica Bank's Bridge-to-Term Loan:

• Speed and Efficiency: Allica Bank emphasizes a streamlined application process, promising faster approvals and quicker disbursement of funds compared to traditional lenders. This speed is critical in competitive property markets where time is often of the essence. This makes it an ideal solution for fast-moving transactions.

• Flexibility: The loan is designed to offer flexible repayment terms, tailored to the individual needs of borrowers. This flexibility is a key differentiator in the market, allowing investors to manage their cash flow effectively. This is particularly crucial in situations where the timelines for securing long-term finance are uncertain.

• Competitive Interest Rates: While specific interest rates are dependent on individual circumstances and risk assessments, Allica Bank is positioning its bridge-to-term offering with competitive rates within the market, making it an attractive option for cost-conscious investors.

• Higher Loan-to-Value (LTV) Ratios: The bank is offering higher LTV ratios than some traditional lenders, making it accessible to a wider range of borrowers. This enhanced access to capital is particularly beneficial for those needing to leverage their assets more effectively.

• Tailored Solutions: Allica Bank understands that every property acquisition is unique. Their team works closely with clients to tailor loan terms to meet their specific requirements, offering a personalized approach to financing. This level of personal service is frequently cited as a key advantage of smaller, more agile banks like Allica.

Targeting Owner-Occupiers and Commercial Property Investors

This new product directly targets two significant segments of the property market:

Owner-Occupiers:

For owner-occupiers, the bridge-to-term loan can be utilized for various purposes, including:

• Renovations and Refurbishments: Securing funds for essential renovations or refurbishments before securing a longer-term mortgage.
• Bridging the Gap Between Sales: Funding a new property purchase while awaiting the sale of an existing property.
• Expansion and Development: Financing extensions or other development projects.

Commercial Property Investors:

The benefits for commercial property investors are equally significant:

• Acquisition Financing: Securing the necessary capital to purchase commercial properties quickly and efficiently.
• Short-Term Refinancing: Bridging the gap between existing loans and new financing options.
• Development Projects: Accessing finance to fund short-term development needs before securing longer-term financing.

Allica Bank's Commitment to the SME Sector

This launch further demonstrates Allica Bank's commitment to supporting SMEs and entrepreneurs within the UK economy. By providing access to flexible and efficient financing options, Allica Bank is empowering individuals and businesses to pursue their property investment goals. Their focus on providing a personalized service, coupled with their innovative product offerings, is making them a significant player in the commercial lending landscape.

Navigating the Commercial Property Finance Landscape

The commercial property finance market can be complex. Understanding different types of loans, such as bridge-to-term, commercial mortgages, and development finance, is crucial for making informed investment decisions. Allica Bank's new product aims to simplify this process, providing a clear and accessible solution to a common challenge.

The Future of Bridge-to-Term Lending

The growing demand for flexible and efficient financing solutions within the property market suggests that bridge-to-term loans will continue to play a vital role in facilitating property transactions. Allica Bank’s entry into this sector, with its focus on speed, flexibility, and personalized service, is likely to influence the competitive landscape and further drive innovation within the industry. The success of this new product could well see other lenders following suit and offering similar products.

This launch marks a significant step for Allica Bank in expanding its product portfolio and solidifying its place within the UK commercial property finance market. It's a move that’s likely to benefit both owner-occupiers and commercial property investors searching for faster, more flexible financing options. The competitive interest rates and higher LTV ratios make this bridge-to-term loan a compelling proposition for those seeking to navigate the complexities of the property market effectively.