Allica Bank, the challenger bank for established businesses, has implemented significant pricing reductions across its commercial mortgage and bridging products, explicitly positioning itself to compete directly with high street lenders on price.
The bank confirmed it has cut rates on owner-occupied and commercial investment mortgages by up to 1.3 per cent. The move is part of a broader simplification of its full property-backed lending range, designed to help brokers drive investment among the UK’s established business community.
Deepening relationships
Alongside the headline rate cuts, Allica has introduced price reductions across its bridging, semi-commercial, specialist healthcare, and children’s nursery products.
The bank is also incentivising deeper banking relationships. It has doubled the discount on owner-occupied mortgages to 0.5 per cent for businesses that open a current account alongside their loan. This follows a limited-time offer launched in November, which waives the £500 commitment fee and provides 0.5 per cent cashback for eligible applications submitted before 31 March 2026 and completed by 30 June 2026.
Nick Baker, chief commercial officer at Allica, commented on the strategy: “We’ve cut rates across the board, simplified our product suite, and backed it all up with experienced people who pick up the phone and help move cases forward. It means brokers can place more deals with confidence, and their clients get competitive pricing without the friction they might get elsewhere.”
Growth trajectory
Allica, which focuses on businesses with between 5 and 250 employees, recently reported that it had lent over £3.5billion to established businesses across the UK.
The bank has seen rapid expansion, having been named the UK’s fastest-growing company by The Sunday Times in 2024 and topping Deloitte’s UK Fast 50 for two consecutive years (2023 and 2024). Allica claims its annual revenue growth makes it the “fastest-growing fintech ever,” having broken into yearly profitability in 2023.
Its stated ambition is to capture 10 per cent market share over the next five years, challenging the dominance of major banks that it argues often overlook the needs of established SMEs.
