Allica Bank enhances bridging proposition as demand drives £250m origination target

Allica Bank has introduced a range of enhancements to its bridging finance offering, including pricing reductions, changes to its refurbishment product and a new cashback incentive, as demand for short-term property finance continues to grow.

The challenger bank said it remains on track to originate £250 million of bridging loans during 2026 following record demand in recent months.

As part of the changes, pricing on bridging loans above £750,000 has been reduced by 0.03% across residential, semi-commercial and commercial products. The bank has also removed exit fees on refurbishment finance and reduced pricing, with rates now starting from 0.77%.

In addition, Allica is expanding the use of its asset management team for site inspections and drawdowns on refurbishment projects, a move aimed at improving consistency and visibility throughout the lending process.

The lender has also launched a limited-time cashback offer across its bridging range. Eligible customers completing loans by 31 October 2026 will receive cashback equivalent to 0.25% of the loan balance, provided applications are submitted between 1 June and 30 September 2026.

The changes come as Allica seeks to strengthen support for brokers and established businesses using bridging finance to fund acquisitions, refurbishments and other short-term financing requirements.

Alongside the product enhancements, the bank has expanded its specialist bridging team with the appointment of Emma Jones as Business Development Manager for the South West and Wales, and Rio Norris as Senior Underwriter.

Steve Palfreeman, Head of Bridging Sales at Allica Bank, said the lender was responding to increasing demand from brokers and business owners.

“Whether it is improving pricing, simplifying processes or introducing something practical like cashback, our focus is always on helping brokers get the deals they need for their customers as easily and quickly as possible,” he said.

“The need for flexible bridging solutions is only increasing, and we remain on track for £250 million in bridging originations this year, which reflects the strong appetite for straightforward and fast lending.”

Allica said the latest enhancements form part of its wider strategy to expand support for established businesses and the broker community, while maintaining a relationship-led approach to specialist lending.