Atom updates serviceability criteria to widen SME support

This includes a reduction in minimum debt serviceability to 120 per cent owner-occupied applications, and 125 per cent for commercial investments. 

This applies to both fixed and variable rate commercial mortgages. The policy aims to ensure businesses can keep up with payments during periods of stressed earnings or cash flow and under a stressed interest rate. 

Atom has lowered the serviceability threshold for most businesses it lends to and the threshold will depend on the quality and strength of the business. This will be reviewed on a case-by-case basis. 

Atom: ‘Allow more SMEs to access finance’

Tom Renwick, head of business banking at Atom Bank, said: “Our serviceability criteria is in place to ensure loans can be repaid during difficult times. While we are currently living through a particularly turbulent period, we felt the time was right to make significant changes to the policy to allow us to offer our commercial mortgages to more SMEs around the UK.  

“We are constantly looking at how we can best offer straightforward, transparent and competitive products to our business customers. We expect that this change will allow more SMEs access to much needed finance, helping them to plan for the future and continue to thrive post-pandemic.”