Atom bank has stepped in to provide a substantial financial boost to an Edinburgh-based property investment company, delivering a commercial loan of £3.7m. This strategic financial move comes at a critical time for the business, which was seeking to expand its portfolio with six additional properties in the city. The company, initially bound by a £1.65m loan for its retail portfolio from a high street lender, was nearing the end of its term and faced the challenge of acquiring further properties without substantial external funding.

The property firm’s journey to secure additional financing hit a roadblock when its existing bank hesitated to support the expansion without a considerable equity increase. An alternative offer was on the table from another broker, proposing a complete funding solution for the property acquisition and the refinancing of the existing loan at a fixed interest rate of 8.25% per annum over five years. However, this came with stringent additional conditions.

Enter Andrew Mackenzie of Veritas Property Finance, who, confident of securing a more favourable deal, introduced the property firm to Atom bank, along with other potential lenders. Atom bank’s proposal reshaped the financial landscape for the firm, offering a five-year loan at a competitive fixed rate of 6.30%. This funding structure not only enabled the refinance of the existing loan but also supported the acquisition of five new properties, requiring a minimal additional equity investment from the client.

The efficiency of Atom bank’s team was evident, as the loan was finalised in less than three weeks post formal credit approval. This swift and strategic financial solution is set to save the client an impressive amount, up to £375,000 over the loan term, compared to the initial offer.

David Castling, head of intermediaries at Atom bank, emphasised the uniqueness of this deal, highlighting the significant savings, the bank’s competitive pricing, and its flexible underwriting approach. Castling also pointed out the bank’s impressive turnaround times for loan applications and offers, indicating a robust operational framework.

Andrew Mackenzie, applauding Atom bank’s efforts, expressed satisfaction with the outcome, underscoring the bank’s commitment to providing value to its clients and the instrumental role of the credit underwriting team and lending specialists in securing this deal. The successful completion of this transaction not only represents a substantial financial win for the property firm but also strengthens the reputation of Atom bank as a responsive and client-focused financial institution.