Atom ups max LTV on large commercial mortgages Mortgage Finance Gazette

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Atom bank has increased the maximum loan-to-value (LTV) available on large commercial mortgages.

Following the change, mortgages of up to £5m are now available up to a maximum of 75% LTV against Market Valuation (MV1). As a result, some applicants’ potential borrowing will have increased from a maximum lend of £1m, up to £5m.

Whilst Atom bank does currently offer up to £10m for eligible borrowers, this increase to £5m for up to 75% LTV will, Atom insists, impact a significant portion of applicants.

For the majority of borrowers seeking a Recovery Loan Scheme (RLS) facility, the bank will now allow lending up to the scheme maximum loan size of £2m, for LTVs of up to 75%.

Atom bank will be closing for new RLS applications from midnight Tuesday 28th May, with reduced rates on the range until that time.

The move to deliver large commercial mortgages at higher LTVs comes following broker feedback and from a desire to unlock finance for SMEs. The digital lender announced last week that it is temporarily reducing the rates on its range of commercial mortgages by up to 0.61%.

Intermediaries can already utilise the Atom bank broker portal in order to quickly create an indicative quote for commercial clients, with borrowers benefiting from bespoke pricing.

Brokers also have the ability to instruct a valuation at any point up to the approval in principle being issued. Atom bank has seen this cut the time from offer to completion by upwards of two weeks, with some cases reduced by as much as seven weeks.

Atom’s head of business lending Tom Renwick commented: “It was clear from our discussions with brokers that there was a real gap in the market for higher LTV lending on these larger mortgages, so we’ve reacted to that.

“These changes demonstrate how serious Atom bank is about supporting the UK’s SMEs with their borrowing needs, and mean we will be able to work with a much wider range of businesses, helping them meet their growth ambitions.”