Atom bank ups max LTV on large commercial mortgages

New maximum loan-to-value of 75% now available on home loans up to £5 million

Atom bank ups max LTV on large commercial mortgages

Digital lender Atom bank has increased the maximum loan-to-value (LTV) available on its large commercial mortgages.

Following the change, mortgages of up to £5 million are now available with a maximum of 75% LTV against market valuation (MV1). Previously, the maximum loan was £1 million.

The lender said that while it already offers up to £10 million for eligible borrowers, the increase to £5 million for up to 75% LTV will impact a significant portion of applicants.

For most borrowers seeking a Recovery Loan Scheme facility, the bank will now allow lending up to the scheme maximum of £2 million, with LTVs up to 75%. Atom bank will close new RLS applications from midnight of May 28, offering reduced rates on its range until then.

The move to offer larger commercial mortgages at higher LTVs follows broker feedback and aims to unlock finance for SMEs. The digital lender recently announced a temporary reduction in rates on its commercial mortgage range by up to 0.61%.

“Atom bank enjoys a strong relationship with intermediaries, and we use their feedback wherever possible to improve our proposition,” said Tom Renwick (pictured), head of business lending at Atom bank. “It was clear from our discussions with brokers that there was a real gap in the market for higher LTV lending on these larger mortgages, so we’ve reacted to that.

“These changes demonstrate how serious Atom bank is about supporting the UK’s SMEs with their borrowing needs, and mean we will be able to work with a much wider range of businesses, helping them meet their growth ambitions.

“Brokers have also been the driving force behind the range of transformative changes we have made to our commercial broker portal and underwriting process, to the point that Atom bank is now able to get an offer out within 14 working days on average.” 

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