Atom Bank has introduced a mortgage discount for commercial loans where the borrower has a high debt service coverage (DSC) or interest coverage ratio (ICR).
The lender will offer a discount of 0.25% off the interest rate 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 will apply with immediate effect for new applicants.
The discount is not available in conjunction with Atom Bank’s existing Better Buildings discount, open to energy-efficient properties. If an application is eligible for both, only the higher discount will apply.
Tom Renwick, head of business lending at Atom Bank, said: “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.”
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