Atom bank has lowered the minimum loan size on its commercial mortgage range to £100,000 and reduced rates across all products for new applications received from 13 April 2026.
The lender said the move was driven by demand from brokers and is intended to widen access to funding for smaller businesses seeking commercial mortgages.
The latest change follows a reduction in February, when Atom lowered its minimum loan size to £200,000. It said 53% of brokers on its panel reported that at least a quarter of client enquiries fall within the £100,000 – £250,000 bracket.
Atom argued that the lower threshold would help address a part of the market where many smaller firms can struggle to secure funding, particularly where mainstream lenders are reluctant to lend below £250,000 unless there is an existing relationship or wider banking business attached.
Alongside the loan size change, Atom has also reduced rates for new applications by as much as 0.94% across its commercial range. The lender said this included average reductions of 0.25% for trading businesses and 0.34% for commercial investment cases, with the changes aimed at improving competitiveness for lending between 50% and 65% loan-to-value.
The bank said the changes had been made possible by operational improvements, including updates to its broker portal and back-office processes. Atom said these measures had helped improve turnaround times, with application to agreement in principle taking one working day on average, and often being completed on the same day, while the average time from agreement in principle to offer is now five working days.
Atom has also made other changes to its commercial proposition in recent months, including rate reductions and a discount for cases with a debt service coverage or interest coverage ratio of at least 200%.
Tom Renwick (pictured), head of business lending at Atom bank, says: “Since our reduction to £200,000 earlier in the year, the feedback from brokers and SMEs has been loud and clear, indicating a specific need to reduce this even further.
“We know that there are very few other lenders supporting businesses at these lower loan sizes, and as a start-up and challenger to the high street ourselves, we want to be able to make a difference where it matters.”
He adds: “Our continuous focus on operational efficiencies, driven by enhancements to our digital processes, has significantly accelerated our service.
“Crucially, by automating parts of the lending process, we have freed up capacity that allows us to expand our support for SMEs while ensuring we continue to provide the service we are becoming known for.”
