Atom bank has improved its variable stressed interest rate calculation for commercial mortgages.

This move, made in response to broker feedback, will help some borrowers access larger loan amounts, Atom bank said.

The bank has simplified the way that affordability for variable rate loans is assessed. With immediate effect, variable rate commercial mortgage applications will now be stressed against a rate of Margin + Base Rate + 1%.

David Castling, head of intermediary distribution at Atom bank, said: “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.

“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.”