Atom bank has launched a new pricing incentive for commercial mortgage borrowers with strong debt service or interest coverage, offering a rate discount on higher quality cases.
The digital lender has introduced a 0.25% rate discount for commercial mortgage applications where borrowers can demonstrate a debt service coverage of 200% for trading businesses, or an interest coverage ratio of 200% for commercial investment cases.
The discount is available with immediate effect on new applications and is aimed at business borrowers seeking to secure lower pricing on well-structured, lower-risk lending proposals.
SUPPORTING SME BORROWERS
The latest pricing change follows a series of updates to Atom bank’s commercial lending proposition over the past twelve months, as the lender looks to strengthen its support for small and medium-sized enterprises.
As part of its stated ambition to become a climate positive bank from 2035, Atom previously launched its Better Buildings incentive, offering discounts of up to 0.25% on commercial mortgages secured against properties with high energy efficiency ratings.
The new debt service and interest coverage discount cannot be combined with the Better Buildings incentive. Where a case qualifies for both, only the higher of the two discounts will apply.
Atom bank has also introduced a simplified stressed interest rate for commercial lending, set at 1% above Bank of England Base Rate plus margin. The change has enabled some borrowers to access larger loan amounts. Enhancements have also been made to the lender’s Growth Guarantee Scheme criteria.
The bank reported a strong end to 2025, recording its highest ever quarterly volumes for commercial mortgage offers in both Q3 and Q4.
Tom Renwick, head of business lending at Atom bank, commented:
“We are continually looking for ways to deliver tangible value to the intermediary market and their clients. This new pricing is recognition of the financial discipline demonstrated by SMEs with strong debt service coverage and investors with prudent interest coverage ratios.
“In offering this discount, we are making it easier for high quality businesses to secure the funding they need, reinforcing our commitment to support a broader spectrum of SMEs with competitive and cost effective funding to push on with their plans for 2026 and beyond.
“Last year was outstanding for the Atom bank commercial lending team. We saw record levels of activity having made a series of enhancements to improve our criteria and our broker Portal.
“We have a host of new developments planned for this year which will open up greater funding to SMEs, and make Atom bank even easier to place cases with.”
