Commercial Finance
Allica Bank launches 10-year fixed commercial mortgages
Fintech challenger bank Allica Bank has launched 10-year fixed commercial mortgages in a bid to give small to medium enterprises (SMEs) certainty over costs.
The lender has committed up to £100m in funding for 10-year fixes in Q4 and launched the products in response to broker feedback and demand.
The mortgages are available for owner-occupied and commercial investment loans up to £5m.
It is priced at a rate 0.25 per cent lower than the comparative five-year fix Allica Bank has on offer and is available up to 65 per cent loan to value against properties with an EPC rating between A to C.
Borrowers will need to demonstrate 1.5 times repayment cover at pay rate.
How to get your first-time buyer clients mortgage ready
Sponsored by Halifax Intermediaries
Adaptable to brokers’ and customers’ needs
Nick Baker, chief commercial officer at Allica, said the bank’s technology allowed it to quickly adapt and meet the changing needs of its customers and brokers.
He added: “We aren’t built on legacy technology, which means we can be agile and change our proposition in response to what brokers tell us they’re seeing in the market.
“I’m extremely pleased that in launching our 10-year fixed-rate mortgage, we are enabling SMEs to focus their energies on managing their business and achieving their ambitions, offering some stability in a period of uncertainty.”