New calculation boosts borrowing capacity
Digital lender Atom bank has adjusted its approach to calculating the stressed interest rate for variable rate commercial mortgages, allowing some borrowers to secure larger loan amounts.
Applications will now be stressed at a rate of margin plus base rate plus 1%, a shift implemented following feedback from brokers. Atom bank believes the change will not only support borrowers looking to expand or refinance but also give brokers more flexibility in structuring deals to meet their clients’ goals.
Atom bank also offers bespoke pricing to business borrowers, with rates tailored to individual circumstances. Loans between £1 million and £4 million come with an additional 0.25% discount, enhancing affordability for larger financing needs.
“By simplifying our stressed interest rate, we are helping business borrowers to access larger loans and take the finance they need in order to achieve their ambitions,” said David Castling (pictured), head of intermediary distribution at Atom bank. “Whether they are looking to grow, to purchase new premises or to refinance existing facilities, Atom bank is determined to support SMEs in reaching their potential and our improved affordability assessment will mean we can do just that.
“Broker feedback is incredibly important to us and has helped inform a host of the improvements we have made to our commercial proposition in recent months. We will continue to work closely with brokers to identify any further enhancements we can deliver which will provide a tangible boost to SMEs in the UK.”
Atom bank has reported strong growth in its commercial mortgage segment. Last October, the bank revealed it had already surpassed the total value of offers and completions recorded during the previous financial year. This milestone came after the bank exceeded £1 billion in commercial mortgage completions.
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