Allica Bank has cut its commercial mortgage and specialist buy-to-let (BTL) rates, aiming to support a wider range of established businesses.
The challenger bank dropped all owner-occupied and semi-commercial investment mortgage rates by 0.25% from today, 16th June.
Specialist BTL rates have dropped by 0.10%.
Businesses opening a current account alongside a commercial owner-occupied mortgage will now receive a 0.25% discount.
This is on top of existing discounts, including 0.25% off for properties with an energy performance certificate (EPC) rating of A to C, for loans over £750,000, or for businesses with 2x repayment cover.
Allica has also improved its affordability criteria, reducing the stress rate it uses to assess base rate linked loans to just 1%, and debt service cover (DSC) requirements for semi-commercial mortgages to 120%.
Nick Baker (pictured), chief commercial officer at Allica Bank, said: “market needs are changing fast and it’s important that Allica is changing with them.
“We keep in close contact with our brokers to understand what they and their clients need, and this range of changes to our proposition reflects what we’re hearing from them.
“By reducing our pricing and affordability requirements, we hope we can support even more businesses achieve their growth plans with the speed and human expertise Allica has become known for within our broker community.”
Baker added: “I’m pleased, too, to introduce this discount for business owners that also open a bank account with Allica, as we look to support established businesses in even more ways than just lending.”
