Atom Bank has recently announced a reduction in the interest rates on its commercial mortgages. This move is a boon for businesses looking for competitive financing options, particularly as we approach the end date for applications under a key recovery scheme.
In a strategic move to boost its commercial lending attractiveness, Atom Bank has reduced the interest rates on its commercial mortgages by up to 0.61%. With these new adjustments, the bank now offers variable rates starting from as low as 2.04% above the base rate. For those preferring stability in repayments, fixed rates begin at 6.25% for loans with a maximum loan-to-value of 45%. These changes provide an enticing opportunity for businesses planning to secure lower borrowing costs.
Time-Limited Opportunity
The bank has set a deadline for new applications under the Recovery Loan Scheme (RLS) at midnight on Tuesday, 28th May. Notably, the rate reductions are temporary, with a significant emphasis on RLS pricing, only valid until the cut-off date. Businesses interested in leveraging these lower rates are urged to act quickly to benefit from the offer.
Enhanced Service Efficiency
Atom Bank is committed to enhancing service delivery for its commercial clients. Significant strides have been made through its broker portal, which facilitates a swift generation of indicative quotes. Additionally, brokers have the flexibility to instruct valuations at any stage up to the approval in principle (AIP), which helps in speeding up the process from offer to completion.
Streamlined Processes Boost Performance
Improvements in Atom Bank’s commercial underwriting process and its broker portal have dramatically streamlined application workflows. As a result, the average time from application to AIP has been reduced to just one working day. The bank has also achieved a 42% reduction in the average application-to-offer time, enabling it to issue offers within an average of 14 working days.
Strategic Insights from the Head of Business Lending
Tom Renwick, the head of business lending at Atom Bank, commented on the rationale behind the rate cuts. He highlighted the importance of pricing for commercial customers, especially with the impending conclusion of the RLS. Renwick stated, “With the RLS coming to an end next month, in particular, we want to ensure that businesses are able to take advantage at the best possible rates on this product.”
He further emphasised the bank’s dedication to supporting SMEs across the country by combining an efficient digital model with fair, bespoke pricing. “This temporary price cut is just the first in a series of propositional changes we are making which will ensure we continue to stand out from the crowd in delivering for the wide range of commercial borrowers who are currently underserved by high street banks,” Renwick added.