Allica Bank launches 10 year fixed rate commercial mortgages


nick baker allica bank

Allica Bank, the fintech challenger bank dedicated to supporting established small and medium-sized businesses, has today announced the launch of a ten-year fixed-rate business mortgage.

Its aim is to give businesses the option of some much-needed long-term certainty in a turbulent market, and help SMEs plan and manage their business costs.

The launch comes as the Bank of England looks set to make further increases to interest rates in coming months, leading many businesses to look for ways to lock in their costs for the long-term.

In light of this demand, Allica has committed up to £100 million in ten-year fixed rate funding in Q4 of this year.

Allica Bank says it comes in response to extensive broker feedback and demand, evidencing the bank’s continued dedication to listening to its brokers and customers, and adapting to changing market conditions.

Available for owner-occupied and commercial investment mortgages up to £5 million, Allica Bank says it gives established SMEs the opportunity to better plan for the future.

The news comes following Allica Bank’s announcement 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 £1 billion to UK SMEs since launching to market in March 2020.

Nick Baker, Allica’s Chief Commercial Officer, says the bank’s powerful 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 ten-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 an interest rate 0.25% below that of the comparative five-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.