Allica Bank has announced a wide-ranging package of changes to its commercial mortgage and specialist buy-to-let products.
The challenger bank has reduced its owner-occupied and semi-commercial investment mortgage rates by 0.25% across the board.
The bank has also trimmed its specialist buy-to-let rates by 0.10%. That range, launched earlier in 2024, forms part of Allica’s ambition to issue £100 million in offers under the product line before the year is out.
In a further incentive to win and retain business customers, Allica has introduced a 0.25% rate discount for clients who open a business current account alongside a commercial owner-occupied mortgage. The measure is intended to encourage more borrowers to use the bank as their primary financial provider, not just for lending but also for day-to-day banking.
The new offer joins an existing suite of incentives, including discounts of 0.25% for loans secured on properties with EPC ratings between A and C, on loans exceeding £750,000, or where businesses can demonstrate a repayment cover of at least twice the debt.
As part of the enhancements, the bank has also eased its affordability criteria. For base rate-linked loans, the stress rate has been reduced to 1%, while the debt service cover requirement for semi-commercial mortgages has been lowered to 120%.
Nick Baker, chief commercial officer at Allica Bank, said the changes reflected the evolving needs of the market and the bank’s commitment to responding swiftly. “Market needs are changing fast and it’s important that Allica is changing with them,” he said. “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.
“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.”
