Atom Bank

Atom Bank made history in 2016 as the UK's first bank built entirely for mobile and digital banking, operating without any physical branches and leveraging technology to deliver banking services more efficiently than traditional institutions. Founded in 2014 by banking industry veterans including Anthony Thomson (co-founder of Metro Bank) and Mark Sheridan, the bank was designed from the ground up to use technology to reduce the cost of banking and pass those savings on to customers through competitive rates and streamlined processes.

The bank is headquartered in Durham, making it one of the most significant financial institutions in the North East of England, and has been a notable employer in the region's growing technology sector. Atom Bank received its full UK banking licence in 2015 and launched its savings and lending products in 2016. The bank has attracted significant investment from institutional backers including BBVA (the Spanish banking group), Toscafund, and other institutional investors, providing the capital base to support its lending growth.

Atom Bank's commercial mortgage proposition reflects its digital-first philosophy: competitive fixed rates, streamlined application processes, and technology-driven underwriting that delivers speed and efficiency. The bank provides commercial mortgages for the acquisition, refinance, and equity release of commercial and semi-commercial properties, with a particular focus on straightforward transactions where its automated processes can deliver the fastest and most cost-effective outcomes.

Loan sizes with Atom Bank range from £50,000 to £5 million, making the bank well-suited for small to medium-sized commercial property transactions. Loan-to-value ratios of up to 75% are available, with terms of up to 25 years. Atom Bank's headline proposition is its competitive fixed-rate commercial mortgages, with fixed periods typically of three to five years. The bank's fixed rates are often among the most competitive in the market for straightforward commercial transactions, reflecting the lower operating costs of its digital model.

Atom Bank's underwriting process uses technology to automate many of the data gathering and analysis tasks that cause delays in traditional banking. The bank's systems can rapidly assess credit data, verify financial information, and generate lending decisions, significantly reducing the time between application and offer compared to manual underwriting processes. For straightforward commercial mortgage applications that fit within the bank's standard criteria, this automated approach can deliver decisions in principle within hours and formal offers within days of receiving complete documentation.

However, it is important to understand the implications of Atom Bank's automated underwriting approach. The bank's technology is highly efficient for applications that fit neatly within its standard criteria, but less well-suited for complex or unusual cases that require human judgement and flexible assessment. Borrowers with non-standard income structures, properties with unusual characteristics, or transactions requiring creative structuring may find that Atom Bank's automated systems are less accommodating than lenders with experienced human underwriters. In these cases, a specialist lender with manual underwriting may achieve better outcomes despite longer processing times.

Atom Bank finances a range of standard commercial property types including offices, retail units, industrial and warehouse properties, and mixed-use buildings. The bank has specific criteria for each property type, and its automated underwriting assesses applications against these criteria efficiently. For properties that fall within the bank's standard parameters — good locations, standard construction, established use classes, and satisfactory condition — Atom Bank's proposition is highly competitive. For more unusual property types or those requiring specialist assessment, borrowers may need to consider alternative lenders.

The bank lends to individuals, limited companies, and LLPs, providing reasonable flexibility in borrower structure. For company borrowing, personal guarantees from directors are typically required. Atom Bank assesses both owner-occupied and investment commercial properties, with rental coverage ratios and affordability assessments applied through its automated systems. The bank typically requires at least two years of business accounts for owner-occupied lending and satisfactory rental coverage for investment property transactions.

Atom Bank's typical interest rates are among its strongest competitive features. Commercial mortgage fixed rates often start from around 5.25% for the strongest applications, with the exact rate depending on LTV, property type, loan size, and fixed-rate period. The bank's lower operating costs — achieved through its branchless model and technology-driven processes — enable it to offer pricing that is competitive with much larger institutions. Variable rate options are also available, though the bank's fixed-rate products are generally its most distinctive offering.

The application process with Atom Bank is designed for simplicity and speed. Enquiries can be submitted through the broker portal, and the bank's automated systems process initial assessments rapidly. Once the borrower is happy with the indicative terms, a formal application is submitted with supporting documentation. Atom Bank uses electronic verification and automated document analysis where possible, reducing the manual processing time. Valuations are instructed from the bank's panel, and legal work proceeds through its approved solicitors. Straightforward completions can be achieved in four to six weeks from formal application.

Atom Bank's digital platform provides borrowers and brokers with real-time visibility of application progress, enabling all parties to track the status of their transaction and respond promptly to any information requests. This transparency is a significant benefit for borrowers who are frustrated by the opacity of traditional banking processes, where applications can seem to disappear into a black box between submission and offer.

The bank is fully authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, with deposits protected by the Financial Services Compensation Scheme. This regulatory framework provides the same protections as any other UK-licensed bank, regardless of Atom's digital operating model.

For Commercial Mortgage Broker clients, Atom Bank is recommended for straightforward commercial mortgage transactions where competitive fixed rates and fast processing are the primary priorities. The bank's digital efficiency delivers genuine value for applications that fit within its standard criteria, offering pricing and speed that many traditional lenders cannot match. For more complex transactions that require flexible underwriting or bespoke structuring, we would typically recommend specialist lenders, but for clean, well-prepared applications on standard commercial properties, Atom Bank consistently delivers strong outcomes.