The digital bank says variable rate commercial mortgage applications will now be stressed against a rate of margin-plus-base rate-plus-1%. 

This moves from the previous calculations of the higher of: margin-plus-650 basis points, or, margin-plus-base rate-plus-1%.

The lender adds that brokers will have greater flexibility to structure deals, with rates calculated based on the borrower’s circumstances.   

For instance, loans of between £1m and £4m benefit from an additional 25 basis points rate discount. 

Atom bank head of intermediary distribution David Castling says: “By simplifying our stressed interest rate, we are helping business borrowers to access larger loans and take the finance they need to achieve their ambitions. 

“Broker feedback is incredibly important to us, and has helped inform a host of the improvements we have made to our commercial proposition in recent months.”