Allica Bank has launched a 10-year fixed-rate business mortgage to help small to medium enterprises (SMEs) plan and manage their business costs.

The 10-year fixed rate is currently available at a rate 0.25% below that of the comparative five-year product.

It is available for loan-to-value (LTVs) of up to 65%, where the security has an energy performance certificate (EPC) rating of between A to C. 

Borrowers will need to demonstrate 1.50x repayment cover at pay rate.

Allica says the launch comes as the Bank of England looks set to make further increases to interest rates in the coming months.

The lender has committed up to £100m in 10-year fixed-rate funding in Q4 of this year. 

Available for owner-occupied and commercial investment mortgages up to £5m. 

Allica chief commercial officer Nick Baker says: “I’m extremely pleased that in launching our 10-year fixed-rate mortgage, we are enabling SMEs to focus their energies on managing their business and achieving their ambitions, offering some stability in a period of uncertainty.”