Lenders cut BTL rates for businesses and landlords

Two leading lenders, Atom Bank and ModaMortgages, have announced rate reductions to support businesses and landlords seeking cheaper financing.

Atom has lowered rates by 0.25% across its fixed-rate standard commercial mortgage portfolio.

For commercial investment properties, new applications now start at 5.88%, while owner-occupied business cases begin at 5.68% for loans at 45% loan-to-value (LTV) or below.

Also, loans ranging from £1 million to £4 million qualify for an extra 0.25% reduction.

The move follows feedback from brokers, reflecting Atom’s commitment to delivering value to business borrowers.

The lender has also streamlined its processes, issuing Agreements in Principle within one working day on average and delivering offers within six working days after acceptance.

Atom’s Quick Quote tool

Borrowers benefit from tailored pricing, with rates calculated based on individual circumstances, accessible via the Quick Quote tool on the bank’s portal.

Atom’s head of business lending, Tom Renwick, said: “This rate reduction applies to our property investment and trading commercial mortgage fixed rates, and means businesses can benefit from the security of a fixed rate, and at a lower cost.

“We know that supporting businesses is about more than just rate however, which is why we have spent so much time and effort streamlining our processes.

“It means borrowers enjoy a faster, easier and smoother experience.”

Competitive solutions for landlords

Meanwhile, ModaMortgages has reduced rates by 5 basis points on its limited edition five-year fixed-rate products for single dwelling properties, houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).

The 75% LTV range now offers rates of 4.64% for single dwellings and 4.74% for HMOs and MUFBs.

These complement ModaMortgages’ two-year limited-edition products, with rates starting at 3.24% for single dwellings and 3.34% for HMOs and MUFBs.

The lender says it caters to a wide range of landlords, including individuals and limited companies, and provides flexible fee options alongside free valuations across its buy to let range.

The lender’s group sales director, Darrell Walker, said: “This move reinforces our commitment to offering competitive solutions for landlords in a challenging market.”

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