Aldermore Bank has launched a new seven-year fixed commercial mortgage product as well as new semi-commercial and commercial owner-occupied products.
The new products Aldermore have launched will be available up to 75% LTV on loans between £50,000 and £1m. Rates start from 5.54%, with three LTV tiers. Bespoke terms are offered for loans over £1m. Customers will have flexible repayment options.
An arrangement fee of 1.5% is charged on all loans and includes a 0.25% “commitment fee” payable at offer.
Rates for Aldermore’s new semi-commercial seven-year fix start at 5.34%, and start at 5.14% for the commercial owner-occupied seven-year fix.
Aldermore’s head of commercial mortgages Caroline Luxmore said:
“Investing in commercial properties or owning your own business premises is becoming more popular and we anticipate that this new product will be attractive to customers who are expanding their portfolios.”
As an additional benefit, Aldermore said it will pay for the cost of search insurance for commercial remortgages up to £1m.
“The products will appeal to borrowers keen to protect themselves from interest rate rises in the longer term. I can see the semi-commercial rate working for our buy to let clients who are increasingly looking to diversify their portfolios with commercial investments and often start with mixed-use premises.”
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