Allica Bank has expanded its commercial mortgage proposition, entering the specialist buy-to-let residential market in response to broker feedback.

The challenger bank has set a target of £100 million in specialist buy-to-let mortgage offers before the end of the year.

Its proposition will provide professional real estate investors and businesses with funding for residential buy-to-let property portfolios, houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).

Brokers can secure up to 75% LTV on loans from £250,000 to £10 million with fixed rates from 5.80%. Discounts will be applied to larger loans or energy-efficient properties and debt service cover ratios (DSCR) have been set lower than the rest of the term commercial investment mortgage range at 110% or 125% for higher-rate taxpayers. 

Allica recently announced rate cuts across its commercial lending products, alongside a refresh of its bridging finance proposition, following its entrance into the sector last year through its acquisition of Tuscan Capital.

Nick Baker, chief commercial officer at Allica Bank (pictured), said: “Our job has always been to listen to what our brokers are saying and provide a proposition that meets their needs and those of the established SMEs that they serve. The introduction of specialist buy-to-let mortgages is in direct response to market demand and we have set ourselves a hefty target of £100 million before the end of the year, a target we have hefty desire to significantly exceed!”