Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Atom Bank Raises Commercial Mortgage Proc Fees and Cuts Rates
Atom Bank has announced a limited-time increase to procuration fees for new commercial mortgage applications, alongside improved interest rate discounts for larger loans.
According to Mortgage Strategy, commercial lending applications submitted to Atom Bank before 30th September will now qualify for a 1.75% procuration fee, which is a 25 basis point increase on the previous fee. The overall 2% arrangement fee remains unchanged, with Atom Bank reducing its retained portion to accommodate the higher proc fee.
In addition to the fee changes, Atom Bank has introduced enhanced interest rate discounts for large commercial loans. Loans between £1 million and £3 million will now receive a 40 basis point reduction, while loans from £3 million to £10 million will benefit from a 25 basis point reduction. Previously, a 25 basis point discount applied to loans between £1 million and £4 million.
Atom Bank continues to offer bespoke rates for commercial mortgage borrowers, tailored to individual circumstances. Brokers can access the Quick Quote tool on the Atom broker portal to obtain indicative quotes for clients.
Last week, Atom Bank also reduced rates across its Prime mortgage range by 15 basis points.
These changes may be of interest to UK letting agents and inventory clerks working with commercial landlords or clients seeking new mortgage arrangements.
Source: Mortgage Strategy