Allica Bank has announced it is adding fixed rate commercial mortgages to its portfolio of SME lending products.
The fintech challenger bank said it it has received “heightened demand” from SMEs amid the uncertainty following the Bank of England’s decision to increase its base interest rate, and rising business costs.
Initially launching with a five-year fixed rate, the bank confirmed it has plans to explore other term lengths to meet market demand.
The launch comes after several enhancements to Allica’s commercial mortgage proposition in recent months, as well as the bank’s pledge to make £1bn in committed loan offers in 2022.
These changes include the reduction of interest rates on its variable rate mortgages, increasing its maximum LTV for many property types, and boosting its maximum customer exposure for care home commercial mortgages to £10m.
Allica chief product and strategy officer, Conrad Ford, commented: “With gas prices, interest rates and other business costs all currently on the rise, these are uncertain times for business owners as they look to plan for their future. Our broker and introducer communities have been clear that their clients would benefit from the certainty of a fixed rate, and I’m pleased we’ve been able to deliver on this at such a critical time.
“Facing up to the unprecedented challenges of the past couple of years has emphasised how important Allica’s focus on relationships and human expertise really is. I encourage our broker community to continue to engage with us about how best we can serve their clients.”
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