Allica Bank has unveiled a series of record rate reductions across its commercial mortgage product range to encourage investment and growth among SMEs.
Rates on owner-occupied commercial mortgages have been cut by up to 1.20%, while rates on commercial investment mortgages have been reduced by up to 0.90%.
The bank has also introduced an initiative that offers further discounts based on loan size, EPC rating, or Debt Service Cover.
Nick Baker, chief commercial officer at Allica Bank, said the move aims to help businesses capitalise on a stabilising environment and promote long-term growth.
“UK businesses have been through a period of sustained uncertainty and increasing costs, but many now see an opportunity to grow and need our support on their journey,” he explained.
“We believe that banks like ours have a responsibility to help established firms capitalise on a stabilising environment to the benefit of their long-term growth.
“That is why we’re reducing the rates on variable-rate owner-occupied commercial mortgages by as much as 1.20% to help support as many businesses as possible,” Baker added.
The announcement follows the bank’s recent easing of stress-testing and Debt Service Cover requirements, as well as its doubling of the maximum commercial mortgage loan size earlier this year.
