Allica Bank has dropped its arrangement fees on commercial mortgages of £750,000 and above for a limited time with the aim of boosting business growth.

Arrangement fees will be waived on owner-occupier mortgages of £750,000 and above, commercial investment mortgages of £750,000 and above, and specialist buy-to-let mortgages of £1.5 million and above for all new eligible applications submitted between 7 July and 30 September.

Allica is also making further changes to its commercial mortgages proposition.

This includes increasing the maximum amount it will lend against a property’s value to 77.5% on commercial mortgages of £3 million and above.

The bank will also now consider lending up to £5 million, up from the previous £2 million, on commercial properties with a single tenant and where the tenant has at least five years left on their lease.

Allica Bank chief commercial officer Nick Baker says: “Brokers play a key role in supporting established businesses’ growth ambitions, and they have told us they need more support when it comes to larger, more complex commercial mortgages, especially where clients are weighing up significant upfront costs and tighter lending criteria.”