Atom bank has introduced a new commercial mortgage discount for borrowers with a high debt service coverage (DSC) or interest coverage ratio (ICR).
A discount of 0.25% is now available in cases where the borrower can demonstrate a DSC of 200% for trading applications or an ICR of 200% for commercial investments.
The rate discount has been introduced with immediate effect for new applications.
Supporting business borrowers
The new discount is the latest in a series of innovations introduced by Atom bank over the last 12 months to deliver stronger support to SME borrowers..
Atom launched a simplified stressed interest rate last year for commercial cases, charged at 1% above Bank of England Base Rate plus margin, opening up the potential for some borrowers to access larger loan amounts.
Tom Renwick, head of business lending, comments: “This new pricing is recognition of the financial discipline demonstrated by SMEs with strong debt service coverage and investors with prudent interest coverage ratios.
“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.”
