Allica Bank cuts mortgage rates and eases affordability 

Allica Bank has announced a series of enhancements to its commercial mortgage and specialist buy-to-let proposition. 

The bank has cut all owner-occupied and semi-commercial investment mortgage rates by 0.25%, following an earlier reduction in February this year across its lending products.

It has also announced a 0.10% cut to its specialist buy-to-let offering, which was launched earlier this year.

Allica will also offer a 0.25% discount for any business that opens a business current account alongside a commercial owner-occupied mortgage, as it looks to ramp up the number of customers that also use it for day-to-day banking.

This adds to Allica’s existing range of discounts, which include a 0.25% discount for properties with an EPC rating of A to C, for loans over £750,000, or for businesses which demonstrate 2x repayment cover.

Rounding off the enhancements, 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), Allica Bank’s chief commercial officer, 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.

“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.”