Atom Bank, the UK’s first app-based digital lender, has finalised its largest commercial mortgage transaction to date in Scotland, completing a £5.7 million deal for a Scottish-based property company. This significant investment is secured against two multi-storey, multi-let office buildings located in distinct Scottish cities – one within the Central Belt and another in the Highlands. The properties house a diverse range of occupiers, from professional services firms to national PLCs.
The deal underscores Atom Bank’s growing influence in the commercial lending landscape and its strategic focus on supporting the UK’s small and medium-sized enterprises (SMEs). The bank emphasised its flexible approach to assessing market value and its willingness to offer higher loan-to-value (LTV) ratios than many traditional high street lenders as critical factors in securing the transaction. Atom Bank typically offers commercial mortgages up to 75% LTV.
This record Scottish transaction comes amidst a period of robust growth for Atom Bank’s commercial lending division. The Durham-headquartered institution has reported its strongest ever quarters for commercial mortgage lending applications and offers in recent periods, consistently setting new benchmarks. By October 2024, the bank had already surpassed the total value of its commercial mortgage offers and completions for the entire 2023/24 financial year, having also exceeded £1 billion in commercial completions by June 2024. Furthermore, Atom Bank saw a 600% increase in operating profit and a 19% rise in commercial mortgage balances to over £600 million in 2023, reflecting its efficient and scalable business model.
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Liam Brodie, Regional Business Development Manager at Atom Bank, who oversaw the deal, highlighted the bank’s commitment to the sector. “Atom bank is determined to support UK SMEs, particularly those who are underserved by larger lenders in the sector. We have a clear appetite for commercial property, and will look for constructive solutions to issues, rather than walking away from a deal that doesn’t fit the standard model,” he stated. He added that the scale of this transaction demonstrates the strong demand for quality commercial lending in Scotland and Atom Bank’s capability to deliver larger facilities in the market.
The Scottish commercial property market, particularly the office sector, has shown signs of renewed activity. While new development remains historically low, rising rents in prime locations are expected to stimulate refurbishment and development projects throughout 2025. Research in Q3 2025 indicated encouraging investment in Scotland’s office sector, with £142 million in transactions, marking its strongest performance since Q3 2024. Occupiers are increasingly prioritising flexible, amenity-rich, and sustainable spaces, a trend that Atom Bank’s adaptable lending criteria can facilitate.
Pathway Commercial Finance, a specialist commercial property broker based in Scotland, advised on the transaction, ensuring its timely completion. Graeme Schmidt, founder of Pathway Commercial Finance, commended Atom Bank’s execution. “Atom bank has delivered on this transaction as anticipated and exceeded expectations. The personal, relationship-based approach created the difference to ensure that the deal was concluded as anticipated and provided realistic mechanisms to ensure expectations were managed and the deal completed within the appropriate timeframe,” he said. Legal advice for Atom Bank was provided by Harper Macleod LLP, with Partner Jacqui Fraser managing the legal aspects.
