Allica Bank has launched a 10-year fixed rate business mortgage with £100m in funding set aside for Q4.
Available for owner-occupied and commercial investment mortgages up to £5m, Allica Bank said it gives established SMEs the opportunity to better plan for the future.
The news comes after Allica Bank announced that it reached monthly profitability in September, making it one of the fastest UK fintechs to do so. It also revealed that it had lent over £1bn to UK SMEs since launching to market in March 2020.
Nick Baker, Allica’s Chief Commercial Officer, said the bank’s technology has enabled it to adapt quickly to meet the changing needs of brokers and businesses: “We aren’t built on legacy technology, which means we can be agile and change our proposition in response to what brokers tell us they’re seeing in the market.
“I’m extremely pleased that in launching our 10-year fixed-rate mortgage, we are enabling SMEs to focus their energies on managing their business and achieving their ambitions, offering some stability in a period of uncertainty.”
The 10-year fixed rate is currently available at a rate 0.25% below that of the comparative 5-year product and is available for LTVs of up to 65%, where the security has an EPC rating of between A-C. Borrowers will need to demonstrate 1.50x repayment cover at pay rate.
