Allica Bank launches fixed rates to support SMEs following base rate uncertainty
By Joy Dumasia
Allica Bank, the FinTech challenger bank dedicated to empowering Britain’s established small and medium-sized businesses, has announced the addition of fixed-rate commercial mortgages to its portfolio of SME lending products. The bank says 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 responds to changing market needs and broker demand. As well as a pledge to make £1 billion in committed loan offers in 2022. This includes reducing interest rates on variable-rate mortgages, increasing its maximum Loan-To-Value (LTV) 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.
Conrad Ford, Chief Product & Strategy Officer at Allica Bank, 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.”
IBS Intelligence recently reported that Allica Bank, the FinTech challenger bank empowering Britain’s established small and medium-sized businesses, is pledging to makeover £1 billion in committed loan offers in 2022.
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