New-to-bank commercial lending applications submitted before 30 September qualify for the higher procuration fee

Atom bank has announced that it has raised the procuration fee available on commercial mortgages to 1.75% for a limited period, while also improving the rate discounts on offer for larger loans.

New-to-bank commercial lending applications submitted before 30 September qualify for the higher procuration fee. The overall 2% arrangement fee remains unchanged, with Atom bank absorbing the difference by reducing its own retained portion.

Alongside the procuration fee increase, the bank has restructured its large loan rate discounts. Loans between £1 million and £3 million now carry a 0.40% rate cut, up from the 0.25% discount that previously applied to loans up to £4 million.

For loans between £3 million and £10 million, a 0.25% cut applies. All commercial mortgage borrowers receive bespoke rates based on individual circumstances, with brokers able to generate indicative quotes through the Quick Quote tool on the Atom bank broker portal.

The changes form part of a broader push to sharpen the bank’s commercial lending proposition. Earlier this year, Atom bank introduced a 0.25% rate discount for cases where the borrower demonstrates a high debt service coverage or interest coverage ratio. The lender also cut its minimum loan size twice, first to £200,000 and then to £100,000, extending its reach to businesses with more modest funding requirements.

Our broker partners are the heartbeat of our commercial mortgage proposition, and we are committed to delivering the strategic value they need to champion their clients and the needs of UK businesses, said Tom Renwick, head of business lending at Atom bank.

He said: By boosting procuration fees and introducing more competitive rates for larger facilities, we are further strengthening our commercial proposition and providing our broker partners with greater commercial flexibility.