Atom bank has reported its strongest ever quarter for commercial mortgage lending.
In the three months to October, Atom bank set a succession of new records for commercial lending activity. It received a record number of applications for commercial mortgages, up by 43% on the level of applications received in the same period of 2023.
The bank also set a new record for the value of offers provided over the three months, beating the previous record which had just been set in the preceding quarter. The level of offers was up by 142% compared with the same period last year.
Atom bank has already surpassed the 2023/24 financial year in terms of the value of offers and completions for commercial mortgages.
The lender passed the milestone of £1 billion in commercial completions back in June 2024.
REASONS WHY
Atom bank has made a succession of improvements to its commercial mortgage proposition which have driven the record levels of activity.
There have been over 100 material changes to the bank’s processes and portal, which has had a significant impact on the speeds involved with commercial cases. The bank is now issuing Agreements in Principle (AIPs) within one working day of the receipt of a fully packaged application on average, while the average timeframe between the acceptance of an AIP and the issuing of an offer is below 10 working days.
In addition, Atom bank has often reduced rates by up to 76 basis points, with the largest cuts applying to deals at the highest loan-to-values.
These rate reductions sit alongside the 25 basis points rate discount currently available on larger loans, sized between £1m and £4m. The discount applies to all large mortgage applications submitted before midnight on Friday 29 November.
“Atom bank is making a tangible difference to this market, helping businesses to set themselves up for success”
Tom Renwick (pictured), head of business lending at Atom bank, said: “Atom bank is passionate about supporting SMEs across the UK, and these record-setting activity levels show that our products and processes are striking a chord with brokers and their business clients.
“We have made significant improvements to our commercial origination processes to deliver significantly faster credit assessment speeds that allow business borrowers to receive the certainty they require to proceed with their plans quickly. Combined with our commitment to delivering exceptional value, it’s clear that Atom bank is making a tangible difference to this market, helping businesses to set themselves up for success.
“There is way more to come too as we make some transformative upgrades in the early part of next year, so watch this space.”
