AldermoreFeb 20 2018

Aldermore launches seven-year commercial mortgage

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Aldermore launches seven-year commercial mortgage

Aldermore has launched a commercial mortgage fixed for seven years, with rates from 5.54 per cent.

The specialist bank said the mortgage, with rates available for up to 75 per cent loan-to-value, was a reaction to demand, with commercial mortgages for owning one's own business premises becoming more popular.

Aldermore also offer commercial owner-occupied seven-year fixed rate deal from 5.14 per cent and a semi-commercial rate at 5.34 per cent.

Caroline Luxmore, head of commercial mortgages at Aldermore, said: "We anticipate that this new product will be attractive to customers who are expanding their portfolios.

"We are delighted to add this longer-term option to our commercial mortgages product suite as we continue to strengthen our market offering throughout 2018."

The seven-year rate is 5.54 per cent for loans up to 60 per cent loan-to-value, 5.89 per cent for loans with an LTV between 60 per cent and 70 per cent and 5.99 per cent for loans with an LTV between 70 and 75 per cent.

An arrangement fee of 1.5 per cent is charged on all loans and includes a 0.25 per cent commitment fee payable at offer.

Andy Elley, head of commercial mortgages at Mortgages for Business, said: "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."