Atom bank has provided a £1.75 million commercial mortgage to a property investor for a light industrial unit located on the London-Essex border, according to an announcement from the digital lender.
The loan, arranged at 60% loan-to-value by Jeremy Robinson, director of Aquilae Capital Advisory, has enabled the borrower to release capital for acquiring additional light industrial properties. Exchange on the first acquisition is expected shortly.
Commercial lending adjustments
The transaction follows several changes to Atom bank’s commercial lending proposition in recent months. The lender has reduced its minimum loan size to £100,000 and introduced a rate discount for cases with high debt service cover.
From 8 June until 30 September, Atom has increased its procurement fee to 1.75% for all commercial lending applications, whilst maintaining the overall 2.00% arrangement fee charged to borrowers. The bank has absorbed the difference by reducing its retained portion.
The lender has also revised its pricing structure for larger loans. Facilities between £1 million and £3 million now receive a 0.40% rate reduction, while those above £3 million up to £10 million benefit from a 0.25% reduction.
Neil Findlay, regional business development manager at Atom bank, said experienced investors are seeking to expand portfolios and require support from lenders familiar with the commercial property sector. The bank has focused on specific sectors including industrial properties.
Robinson stated the lender understood the client’s objectives and delivered competitive fixed-rate terms. The firm is already engaged with the client on a subsequent transaction.
The deal comes as mortgage industry stakeholders call for policy reform amid broader lending market challenges. Light industrial properties have attracted investor interest, contrasting with declining new build housing listings in the residential sector.
The transaction highlights continued appetite for commercial property refinancing amongst established investors, particularly in the industrial sector along the London periphery.
