Commercial Mortgages

No, our commercial mortgages are open to both new and existing customers of Atom bank. We want to be able to support all small and medium enterprises (SMEs).

To apply, you’ll need to find an independent broker who will help you decide if Atom bank has the right type of lending product for you. They will assess your business needs and make a product recommendation, whether that is with us or someone else. If they think one of our products is suitable, they will assist you in completing and submitting an application.

In a nutshell, the application process follows six key steps:

1. Speak to a broker about your options
2. Your broker applies to Atom on your behalf
3. We carry out a precautionary ID and business check
4. We assess your application and documentation to reach a decision in principle
5. Our partners undertake a valuation of any security property
6. We get back to you with a final decision

Yes, you can make either regular or lump sum overpayments with both fixed rate and variable products.

For overpayments on fixed rate products, we will recalculate your regular repayments so that they’re reduced, but you can also opt to reduce the bullet repayment due at the end of your term. In any given 12 month period, you can repay 10% of your outstanding balance without incurring an early repayment charge (ERC). In the final month of the loan, no ERC will be applicable. If the 10% allowance is exceeded, the charge incurred will be in line with those on our BBSL Price List and your Loan Agreement.

There is no Standard Variable Rate at the end of the fixed rate period for a fixed rate commercial mortgage. At the end of the loan term, the options available to you are to repay the loan in full or refinance, either with us or elsewhere. Since there are no ERCs during the final month of the loan, you are able to refinance in good time, if necessary.

To apply for a commercial mortgage on behalf of a customer, you need to be registered with us — to do so you can call our Business Development Team on 0333 399 0060 or by finding and speaking to your local RBDM.

Once you’ve registered, you can log into Portal Lite, our broker platform for making and managing applications for your customers. You can then submit an application for a commercial mortgage and upload documentation to begin the application process.

A fixed rate commercial mortgage is a loan that is secured against a commercial property owned by the business. The loan has a fixed rate of interest over an agreed term, which means that the interest rate will not change during this period subject to there being no event of default or other issue with the loan.

You’ll repay the loan over the agreed term. Interest and capital repayments will usually begin the month after you’ve taken out the loan, continuing on a monthly or quarterly basis. During your fixed term period, your interest payments will remain the same, unless you make an overpayment to reduce your repayments.

Fixed and variable rate commercial mortgages differ in how interest rates are applied. A fixed rate loan will retain the same interest rate throughout the agreed fixed period. On the other hand, a variable rate loan follows an index rate of interest (usually Bank of England base rate), meaning the interest rate can move up or down depending on how that index rate fluctuates.