Atom Bank has reduced rates across its commercial mortgages by as much as 0.76%.
Its variable mortgage rates have seen the largest reduction, while Atom Bank’s fixed rates have been cut by up to 0.73%. The biggest cuts have been made to higher-loan-to-value (LTV) options.
At 75% LTV for borrowers with the highest credit quality, the variable rate is 2.89% above the base rate, while the fixed rate is 7.36%. The variable rate at 45% LTV for property investment loans is 2.06% higher than the base rate and the fixed rate is 6.43%.
Business borrowers will receive bespoke rates with Atom Bank depending on their individual status and circumstances, so all quoted rates are subject to the status and assessment of application.
Atom Bank has also announced a 0.25% rate discount on large commercial loans, applicable to borrowing amounts between £1m and £4m.
The lender said it introduced this discount to support businesses and it will apply to applications submitted before midnight on 29 November.
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Tom Renwick, head of business lending at Atom Bank, said: “I have no doubt that this latest rate cut on our commercial mortgage range will be welcomed by brokers and their clients. We know that many SMEs are pushing on with their investment plans now that the uncertainty of the Budget has cleared, and these competitive rates will help set them up for success in the future.
“The combination of the rate reduction and our discount for larger commercial mortgages makes clear Atom Bank’s commitment to this market. Whether it is pricing or improvements to our processes, we will continue to adapt our proposition wherever necessary to support the UK’s SMEs.”
Catalyst lowers property finance product rates
Catalyst Property Finance has reduced rates across its bridging, refurbishment, and specialist buy-to-let (BTL) products.
Rates on its unregulated bridging, auction, development exit, finish and exit loans now start from 0.79% per month, while refurbishment loans with cost of works up to 50% of open market value (OMV) start from 0.85% per month.
Catalyst’s refurbishment loans with cost of works from 50% to 100% of OMV begin from 0.89% per month, while refurbishment loans with cost of works over 100% of the OMV start from 0.97% per month.
Its flexible bridging rates start at 0.99% per month, commercial bridging rates are at the base rate plus 7.5% per annum, and specialist BTL rates are 8.75% per annum.
The lender is also increasing leverages on second charge and commercial products from 65% to 70% of 180-day value.
Chris Fairfax, CEO at Catalyst Property Finance, said: “After what feels like a long time of pricing stagnation in the property finance market, I am extremely pleased to announce a widespread rate reduction across Catalyst’s product range, as well as increased leverages and loan sizes on a number of our specialist products. Our decision reflects the current state of the UK finance and property markets, which have seen some welcome stabilisation in recent months.
“Intermediaries can now support their developer and investor clients with highly competitive funding that provides increased profit margins and less capital outlay. And, in certain circumstances, these positive changes will enable more marginal property deals to become viable again.”
Anna Bennett, marketing director at Catalyst Property Finance, added: “Alongside the reprice, we’ve taken the opportunity to evolve and improve our product offering. Brokers who have worked with Catalyst before may notice that our range has become a little more streamlined, our criteria simplified, and we’ve refreshed our product guide design. We’re still offering the same wide range of funding solutions and ‘Catalyst-style’ product flexibility, but in an easier-to-digest format.
“I’ve worked closely with our new sales director, Spencer Gale, on product naming and visual layout. We hope brokers find the new look and feel even easier to navigate. If they would like a copy of the new style guides, our new business team will happily oblige.”
