Atom Bank introduces rate discount for high debt service cover cases

Atom Bank has introduced a new commercial mortgage discount for cases where the borrower has 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.

As part of Atom’s journey to becoming a climate positive bank from 2035, the bank previously introduced the Better Buildings incentive, which offers a discount of up to 0.25% on commercial mortgages raised against properties with high energy efficiency ratings. 

This discount is not available in conjunction with the Better Buildings discount. Where an application is eligible for both, only the higher discount will apply. 

In addition, Atom Bank 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, as well as introducing enhancements to its Growth Guarantee Scheme criteria.

Tom Renwick, head of business lending at Atom Bank, commented: “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.”