Fixed rate owner-occupier deals now start from 6.10%
Allica Bank has announced substantial reductions in the pricing of its fixed rate mortgages, with reductions of up to 90 basis points across the board.
The adjustments, part of a major pricing overhaul, come after the recent dips in headline UK inflation, sparking speculation of an earlier-than-anticipated rate decrease by the Bank of England.
With residential mortgage rates already hitting a seven-month low, Allica Bank said it is following suit with reductions in its commercial mortgage rates.
As a result, the challenger bank now offers fixed rate owner-occupied mortgages starting at 6.10%, with additional discounts for loans exceeding £750,000, properties boasting an energy performance certificate (EPC) rating of ‘A’ to ‘C’, or customers demonstrating over 200% Debt Service Cover.
Allica has also enhanced its Recovery Loan Scheme offering, which can now be utilised to support businesses acquiring properties for investment purposes, with rates commencing at 8.25% for fully commercial properties.
“The current economic outlook for the UK and likelihood, as it stands, that the Bank of England may reduce interest rates perhaps as early as the middle of the year is welcome news for banks, brokers and businesses,” Stephen Spinks (pictured), head of commercial mortgage sales for the South at Allica Bank, commented. “It has enabled Allica to reduce our rates earlier than we expected, and we hope this trend continues.
“Established businesses are such an important part of our local communities across the UK, and it is vital they can access the capital they need to invest and grow after so many challenging years. We hope these cuts in our rates will enable brokers to find a suitable lender for even more of their clients.”
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