Atom bank has improved its variable stressed interest rate calculation for commercial mortgages, which will help some borrowers access larger loan amounts.

The digital 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%.

The simplification of the stressed interest rate comes in response to broker feedback, and means that Atom customers may be able to improve their borrowing power and reach their growth goals. In addition, brokers will enjoy greater flexibility, allowing them to structure deals which align with the ambitions of their client.

Business borrowers enjoy bespoke pricing when working with Atom bank, with rates calculated based on the borrower’s circumstances. Loans of between £1 million and £4 million benefit from an additional 0.25% rate discount. 

Atom bank is currently able to issue an Agreement in Principle within one working day, on average, after receiving a fully packaged application. Formal offers are currently provided on average within six working days of the acceptance of the Agreement in Principle.

David Castling, head of intermediary distribution at Atom, comments: “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.”