Rates now begin at 2.12% above the base rate
Digital lender Atom bank has announced a reduction of 0.30% in the rates of its variable rate commercial mortgage products.
Following the cut, the new rates begin at 2.12% above the base rate for loans with a 45% loan-to-value (LTV) ratio.
Trading businesses can now access loans at 60% LTV with a representative rate of 2.93% over the base rate, and at 50% LTV at 2.62%. Similarly, property investments at 60% LTV come with a rate of 2.89%, and at 50% LTV, the rate is 2.58%.
The rate changes extend to commercial mortgages up to 75% LTV for loans up to £1 million. For larger loans exceeding £1 million, financing is available up to 70% LTV.
“Price is a huge factor for brokers when looking to secure a commercial mortgage for their business clients, so in addition to our incredibly competitive fixed rate products, we are delighted to be able to offer a more competitive range of variable options for this market,” said Tom Renwick (pictured), head of business lending at Atom bank. “With the market expecting a reduction in base rate in the months ahead, the appeal of variable rate mortgage deals has increased for many business borrowers.
“Price is not the only factor for brokers and their clients however, which is why Atom bank continues to focus on driving forward technology improvements aimed at providing a more efficient process.”
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