The bank says SMEs and brokers demanded the bank offer fixed rate commercial mortgages, following the Bank of England’s decision to raise the base rate from 0.5% to 0, 75% in March and rising business costs.
Image source: Conrad Ford/Allica Bank
Allica Bank, the challenger SME bank, is bolstering its product portfolio with plans to launch a range of fixed rate commercial mortgages.
The bank says SMEs and brokers have demanded the bank offer fixed-rate commercial mortgages, following the Bank of England’s decision to raise the base rate from 0.5% to 0.75% in March and rising business costs.
Allica Bank, which closed a £110m funding round last year, its largest to date, has announced that it is initially launching a five-year fixed rate commercial mortgage product.
Other term lengths would follow over time, he said.
Conrad Ford, Chief Product and Strategy Officer, said: “With gas prices, interest rates and other business costs all currently on the rise, times are uncertain for business owners. business as they seek to plan for their future.
“Our broker and introducer communities have made it clear that their clients will benefit from the certainty of a fixed rate, and I am delighted that we have been able to achieve this at such a critical time.”
Allica Bank, which has pledged to make £1bn of committed loan offers this year, has made several changes to its commercial mortgage lending proposition in recent months.
This includes reducing interest rates on its variable rate mortgages and increasing its maximum customer exposure for commercial care home mortgages to £10m.
Allica Bank, which obtained a UK banking license in 2019, has offices in Milton Keynes and London.
It offers companies asset financing products, commercial mortgages and corporate savings accounts.