Atom bank has decreased the rates across several mortgage products, with selected five-year products now available at below 5.00%.

The lender is cutting rates on its two and five-year prime, retention and further advance mortgage products. 

The biggest rate reduction will be on selected two-year products, which have been reduced by 0.30%. 

Two-year products now start from 5.14%, with five-year rates starting from as low as 4.89%.

In addition, Atom is also increasing the max loan-to-value (LTV) for new build houses from 85% to 90%. 

The lender says the increase aims to provide additional support to borrowers, particularly first-time buyers.

Atom bank head of mortgages Richard Harrison says: “Following our latest funding round, we are looking to ramp up our mortgage lending in the coming months.”

“Some changes in the market and a recent fall in swap rates mean we can pass this benefit onto customers and offer them an even better deal.”

Last week, Atom bank reintroduced a suite of near prime and prime mortgage products.  

The app-based lender said following its withdrawal from the near prime market at the end of September, it is re-entering with a suite of two and five-year term products up to 85% loan to value.