Atom bank has cut rates across purchase and remortgage products by up to 25 basis points.  

The app-based lender says selected five-year 85% and 90% loan-to-value fee-paying loans are now available from 4.19%.  

The move comes after the firm recently completed several criteria changes that include raising the validity period for its remortgage and purchase products to six months.   

Its prime offers include a two-year fixed-rate 90% LTV deal, with a £900 fee, at 5.04% and a three-year 85% LTV loan, with a £900 fee, at 4.69%.  

The lenders near prime deals include a two-year fixed-rate 85% LTV offer, with a £900 fee, at 6.89% and a five-year fixed-rate 85% LTV loan, with a £900 fee, at 7.04%.  

Atom bank head of mortgages Richard Harrison says: “The average cost of a home today remains high, and borrowers are hampered by the cost-of-living crisis, meaning housing affordability remains a significant challenge for many buyers.”  

“We are making these rate reductions at a time when some lenders have begun to pass on a proportion of the recent increase in swap rates to customers.”