Alliance & Leicester Commercial Bank has launched a wholesale buy-to-let product aimed at professional landlords with larger portfolios of predominantly residential investment properties.

The launch follows the bank's move into the retail buy-to-let market earlier this year and is part of its strategy to develop a specialist commercial property lending business encompassing both the commercial and residential investment markets.

Charles White, director of strategy and commercial property lending at Alliance & Leicester Commercial Bank explained: "Our wholesale buy-to-let product is designed to offer flexibility and committed funding for professional landlords to facilitate active portfolio management. We are confident that the new product will meet a demand that is not currently widely catered for.”

“Alliance & Leicester Commercial Bank has developed significant expertise in the commercial property lending sector with the recruitment of experienced lending teams in both London and Manchester. This has enabled the bank to provide a range of bespoke lending products across a broad sector focus and to develop its portfolio in a controlled way."

Alliance & Leicester Commercial Bank's wholesale buy-to-let product is designed for professional landlords with residential investment portfolios of more than five properties or a minimum market value of £1 million.

Landlords will be given a committed revolving credit facility secured on a portfolio of properties, providing the flexibility to:

• Bid for new stock in time critical or competitive situations (such as at auctions) with the certainty of committed funding and
• Acquire and refurbish un-tenanted properties pending re-letting.

The wholesale buy-to-let product will allow a maximum portfolio loan-to-value of 75%. However 100% finance on new purchases will be allowed where the existing loan to value against the existing portfolio permits. Landlords will also be able to redraw funds within facility limits where borrowing is reduced from capital reductions or property sales.

The wholesale buy-to-let product will be available via national relationship managers based in London and Manchester and Alliance & Leicester Commercial Bank’s Business Centre network.