Atom bank further reduces Prime and Near Prime mortgage rates

The UK’s first app based bank, Atom bank, has further reduced its Prime and Near Prime mortgage rates by up to 0.55% ..

The move comes after the challenger bank recently won Best Online Lender at the What Mortgage Awards 2021, becoming the first company to win the category for the 4th year running. It aims to substantiate this title by offering competitive rates for more customers, by making the process of applying for mortgages easier and more accessible for prospective home buyers.

The rate changes are as follows:

Prime 85%, 90% & 95% Rate Reductions: 

·         2 & 5 year fixed 85% LTV rates reduced by up to 0.45%

·         2 & 5 year fixed 90% LTV rates reduced by up to 0.40%

·         2 & 5 year fixed 95% LTV rates reduced by up to 0.30%

Near Prime Products:

·         Revised LTV structure introduced, with Atom now offering rates at 65% and 75% LTV.

·         2 year fixed 75% LTV rates reduced by up to 0.55%

·         5 year fixed 75% LTV rates reduced by up to 0.50%

·         2 & 5 year fee and no fee products are available, with cashback incentive product variants.

Paula Mercer, Head of Intermediary Lending at Atom bank said:

“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. We look to bring an efficient, streamlined approach that sets us apart from our competitors.”

Danny Belton, Head of Lender Relationships at Legal & General also commented:

“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.”

For a lot of borrowers, being unable to get progress updates on applications is often a cause for concern. As an app-based bank, once an application is approved with Atom, customers can track the progress of their mortgage securely and in real time on the app – offering full transparency on the process to give users peace of mind. 

For more information on Prime and Near Prime mortgages and how to apply, visit the Atom bank website.

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