Allica Bank cuts fixed rate mortgages by up to 0.90%

Allica Bank has reduced the pricing across all its fixed rate mortgages by up to 0.90%.

The move comes following a fall in headline UK inflation to 3.9% in November that has led to growing anticipation of an earlier-than-initially-expected rate decrease by the Bank of England. Residential mortgage rates have already reached a seven-month low, with Allica Bank following suit with its commercial mortgages.

It can now offer a fixed-rate owner-occupied mortgage from 6.10%, with additional discounts available for loans over £750,000, properties with an EPC rating of A-C, or customers able to demonstrate over 200% Debt Service Cover.

Allica has also further enhanced its Recovery Loan Scheme offering, and can now use the scheme to support businesses purchasing properties for investment purposes, with rates starting from 8.25% for fully commercial properties.

Allica Bank’s head of commercial mortgage sales for the South, Stephen Spinks, commented: “The current economic outlook for the UK and likelihood, as it stands, that the Bank of England may reduce interest rates perhaps as early as the middle of the year is welcome news for banks, brokers and businesses. It has enabled Allica to reduce our rates earlier than we expected and we hope this trend continues.

“Established businesses are such an important part of our local communities across the UK, and it is vital they can access the capital they need to invest and grow after so many challenging years. We hope these cuts in our rates will enable brokers to find a suitable lender for even more of their clients.”