Digital lender Atom Bank has cut its prime and near-prime mortgage rates by up to 55 basis points.
Its prime reductions cover:
Two and five-year fixed offers at 85% loan-to-value, with rates reduced by up to 0.45%.
Two and five-year fixed deals at 90% LTV, with rates down by up to 0.40%.
And two and five-year fixed loans at 95% LTV, with rates cut by up to 0.30%
Its near-prime products, first launched in June, have a revised LTV structure, with the lender now offering rates at 65% and 75% LTV.
This includes two-year fixed deals at 75% LTV, with rates reduced by up to 0.55%.
And a five-year fixed mortgage at 75% LTV, with rates reduced by up to 0.50%.
The app-only bank, founded in 2014, says these two and five-year products come with or without fees, along with cashback variants.
The lender has been led by chief executive Mark Mullen since September 2014.
Atom Bank director of intermediary lending Paula Mercer says: “Atom understands the needs of customers and appreciates that the pandemic has impacted the majority of people’s finances.
“The initial uncertainty of lockdowns may have caused customers to default or miss loan payments. Where mainstream banks and traditional lenders may deny mortgage applications due to indiscretions made over a year ago, our near-prime package was curated to meet the needs of these customers.
“Despite being new to the near-prime market, we believe it offers a service that is unparalleled – through our digital offering, speed of service and relevant criteria.”
L&G Mortgage Club head of lender relationships Danny Belton adds: “There is no doubt that product pricing has become extremely competitive in recent months, with a variety of lenders unveiling rate reductions.
“For customers, this has meant the growing availability of historically affordable mortgage options and it’s excellent to see Atom Bank also choosing to pass on rate savings to borrowers.
“Atom’s latest round of rate changes will provide meaningful product options to our adviser community, helping them to pair their prime and near-prime borrowers that are interested in a digital-first service with favourably priced mortgages.”
