The deals start as a bridging agreement and then move onto a lower-cost loan when agreed conditions are met.

They are designed to support projects that do not yet meet commercial mortgage criteria and borrowers carrying out refurbishments.

Borrowers only need to apply once and pay a single valuation and application fee, reducing uncertainty and costs, the lender says.

They can also choose to release equity when the loan converts to a term product if they need to invest further in the project.

Brokers will be paid commission both at origination and the trigger point.

There are two variations of the product.

The Stabiliser: Designed to help businesses meet commercial mortgage criteria over time, with loans from £250,000 to £5m.

Rates start from base rate + 6.45% during the bridging phase.

The Improver: Designed for refurbishments, especially those enhancing a property’s environmental credentials.

Loans range from £500,000 to £5m, with rates from base rate + 7.05% during the bridging phase.

In both cases, borrowers transition to commercial mortgage rates from base rate + 2.9% for owner-occupiers and base rate + 4.45% for investors.

Allica chief commercial officer Nick Baker says: “By combining bridging and term lending into a single, streamlined journey, we’re helping established businesses act quickly and confidently on their property plans – without the usual delays, fees, or duplicate underwriting.

“This launch is the result of significant work from our team, and close collaboration with our broker community.”

Last year, Allica acquired bridging lender Tuscan Capital.