The ‘Better Buildings’ discount will be available to properties with either an Energy Performance Certificate (EPC) rating of at least a B or a Building Research Establishment Environmental Assessment Method (BREEAM) rating of at least ‘very good’.
Properties with an EPC rating of A+/A or a BREEAM rating of ‘outstanding’ or ‘excellent’ will be eligible for a 0.25% discount. A 0.1% discount is available for those with an EPC rating of B or a BREEAM rating of ‘very good’.
Each application can only benefit from one discount. For applications covering multiple properties, the discount will be assessed on a portfolio-wide basis. More than 70% of the portfolio’s total value must meet the criteria for the qualifying discount band.
Atom Bank has added a field to its application form so brokers can include the EPC or BREEAM ratings for properties. This can also be included in Atom Bank’s quick quote tool, when brokers are determining the indicative rate for clients.
The efficiency rating must be evidenced at the point of application and will be verified at the valuation stage.
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If the rating is lower than stated on the application, the discount will be removed.
The introduction of this discount comes after reductions of 0.25% across Atom Bank’s fixed rate commercial mortgages, and a further 0.25% cut for cases between £1m and £4m.
Becoming climate positive
Atom Bank said this was also part of its journey to become more climate positive from 2035. As part of this, the lender has purchased 25 acres of Northumberland woodland to sequester 7,000 tonnes of carbon from the atmosphere over its lifetime, which is equivalent to the output of Atom Bank’s operations since it launched over a decade ago.
Atom Bank will also lend into natural capital projects that support the sale of Biodiversity Net Gain (BNG) units required for housing development.
Tom Renwick, head of business lending at Atom Bank, said: “We’re incredibly passionate about supporting improvements to the efficiency standards of commercial property across the UK. With the introduction of our Better Buildings discount, Atom Bank is not just helping to drive positive change; we’re actively rewarding it. We’ve ensured that the best rated properties will benefit from our most competitive rates, regardless of whether they have an EPC or BREEAM rating.
“As part of our commitment to playing a vital role in reducing the carbon intensity of the built environment – which accounts for approximately 25% of UK greenhouse gas emissions – we will continually enhance the criteria for what qualifies as a ‘Better Building’ over time.
“Brokers can head to our Quick Quote tool now to get an immediate idea of the discounts available to their commercial clients and see the real impact improved efficiency ratings will have on the cost of their borrowing.”
