It says demand for fixed-rate mortgages has gone up for these businesses
Fintech challenger bank Allica has announced the addition of fixed rate commercial mortgages to its portfolio of SME lending products.
According to the bank, it has received heightened demand from SMEs and its broker panel for mortgages with a fixed rate amid increasing uncertainty following the Bank of England’s decision to increase its base rate, and rising business costs.
The launch comes after a number of enhancements to Allica’s commercial mortgage proposition in recent months as it tries to respond to changing market needs and broker demand.
This includes reducing interest rates on its variable rate mortgages, increasing its maximum loan-to-value for many property types, and boosting its maximum customer exposure for care home commercial mortgages to £10 million. Earlier this year, it also increased procuration fees for its broker community.
Initially launching with a five-year fixed rate, the bank has plans to explore other term lengths to meet market demand.
“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,” Conrad Ford, chief product and strategy officer at Allica Bank, said.
