Allica Bank has reported £65m of instant commercial mortgage decision-in-principle (DIP) applications since it launched a new automated application tool at the start of November.

The instant DIP allows brokers to get an immediate decision as soon as an application is submitted.

Allica said it is one of the first banks to offer such a service for commercial mortgages, providing brokers and their clients with maximum clarity at the start of the lending process.

Of the £65m of DIP applications Allica has processed automatically, 45% have subsequently been converted into full commercial mortgage applications. By automating the DIP process, the firm said it has allowed it to free up hours of the lending team’s time, which it can then focus on processing these full applications quicker.

Allica director of lending product, Nick Moss, said: “We know how important client relationships are to our brokers. By enabling brokers to get an instant DIP, they can provide immediate clarity to their clients and help them find funding at speed. In today’s challenging economic environment, that’s never been more crucial.

“Allica believes in using technology to enhance the broker experience, but not at the expense of the human relationships we have with them. Our new instant decision-in-principle tool frees up our staff to focus on adding value throughout the lending process, to properly assess the nuances of full applications, and build even stronger relationships with our vital broker community.

“We have plenty more ideas in the works like this, and we’re looking forward to learning how else we can help brokers support their clients.”

Allica has previously announced plans to reach £500m in committed loan offers between September and the end of the year. The bank also launched a 10-year fixed-rate mortgage in October in response to broker demand.

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