The £1.75 million commercial mortgage facility secured by Atom Bank is set to fuel industrial property expansion on the London-Essex border, where a light industrial unit will be used as collateral. This strategic financing will enable the borrower to release existing capital and invest in further light industrial properties, with an acquisition imminent.
Atom Bank's recent adjustments to its commercial lending offerings include lowering the minimum loan size to £100,000, making it more accessible for smaller ventures, and introducing a rate discount for applications demonstrating strong debt service cover. A promotional offer from 8th June to 30th September sees Atom Bank absorb the difference in procurement fees for all commercial lending applications, reducing them from 2% to 1.75%. The digital lender has also revised its pricing structure for substantial loans, offering a 0.40% rate reduction for facilities between £1 million and £3 million, and 0.25% for loans above £3 million up to £10 million.
According to Neil Findlay, Regional Business Development Manager at Atom Bank, the increasing demand from experienced investors seeking portfolio growth has driven this focus on specific sectors, such as industrial properties. This aligns with market trends where light industrial units continue to attract significant investor interest, contrasting with a decline in new build housing listings within the residential sector.
The deal highlights the persistent appetite among established investors for commercial property refinancing, particularly within the industrial segment near London. Such investments are crucial for the UK economy, providing essential infrastructure for logistics and manufacturing operations that support job creation and economic output.