Atom bank has announced that it is increasing its mortgage rates as of tomorrow (Thursday 21st March).
A note to brokers read: “At 8am on Thursday 21st March, we’re increasing rates across our Prime range.
“Our 2-year, 3-year and 5-year purchase, remortgage, retention and further advance products, across all LTV bands, will be increasing by 0.20%.”
Newspage asked brokers for their views.
Reaction
Darryl Dhoffer, adviser at The Mortgage Expert:
“A new gen lender appears to be using old gen lender tactics. Atom bank clearly didn’t get the memo that inflation dropped today. A reduction was needed, not an increase.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“Atom’s rates are going up like a mushroom cloud, despite today’s positive inflation results, which means these changes must be about business volumes rather than linked to the direction of travel.”
Justin Moy, managing director at EHF Mortgages:
“As a smaller lender with a renewed vigour for lending, it was inevitable that rates might increase due to better application numbers rather than swap rates. Generous income mulitples, helpful criteria and even a new range of near-prime products make Atom bank a very useful lender option, but brokers will be split over this rate increase announced today.”
Rohit Kohli, director at The Mortgage Stop:
“Atom bank goes nuclear with this update to its rates. With inflation falling to an 18-month low this morning, this increase may have been a pre-prepared change that was already in the pipeline. We can only hope that when markets settle over the next couple of days they review this decision and ease back on the increase.”
Dariusz Karpowicz, director at Albion Financial Advice:
“Atom bank’s gearing up to hike rates across the board. Talk about marching to their own beat. Despite the sunny vibes from decreasing inflation and NatWest slicing rates, Atom’s dialling theirs up by 0.20%. Why, you ask? It’s like choosing to wear a wool coat on a warm day, although they’ve likely got reasons we might not see from the outside. Maybe they’re balancing their books or prepping for future financial forecasts. Whatever the case, it’s a bold move that’s sure to stir up some chatter. Let’s watch how this plot twist unfolds in the ongoing mortgage drama.”
Ben Perks, managing director at Orchard Financial Advisers:
“As other lenders look to reduce, Atom have gone the other way. The optimist in me hopes that they are the closing the doors to get up to date with all applications and look after service levels, so they are ready to attack as swap rates fall. Time will tell and hopefully no other lenders follow suit.”
