Atom bank, recognised as the UK’s inaugural app-based bank, has announced reductions in its prime mortgage rates by up to 0.30%, and all near prime rates by 0.20%. This move is a direct response to the recent dip in swap rates, aiming to benefit borrowers immediately.
Especially notable are Atom bank’s rate cuts in high loan-to-value (LTV) products, which aim to assist borrowers with smaller deposits. The updated rates include a 4.94% 5-year fixed rate for up to 90% LTV and a 5.19% rate for up to 95% LTV. Additionally, 2-year fixed rates have been adjusted to 5.44% for 90% LTV and 5.79% for 95% LTV. These products come with no fee, a complimentary valuation, and fee-assisted legals for remortgage products.
Over the past six months, Atom bank has consistently reduced rates in its prime and near prime ranges while focusing on expediting the application-to-offer process, demonstrating its commitment to customer value and home ownership.
Following its recognition as the Best Bank in the Smart Money People H2 2023 Mortgage Lender Benchmark Study, which reflects mortgage broker opinions in the UK for the latter half of 2023, these rate cuts reinforce Atom bank’s position in the market.
Richard Harrison, head of mortgages at Atom bank, said: “The recent statistics highlighting that lending to first-time buyers was down by a fifth in 2023 demonstrates the plight of many who are struggling to get onto the housing ladder.
“We know how important this sector is, so we’re delighted to be offering them further rate cuts with a slick digital experience that can reduce the hassle often associated with an application.
“Equally, we know that the pressure that has been put on household budgets means that increasing numbers of would-be borrowers are more likely to fall within the Near Prime category, so we want to continue our commitment to supporting this area of the market by cutting rates across the range.
“Having made a number of rate reductions in recent months, we remain steadfast in our commitment to ensure we offer excellent value and a simple, speedy process to help more people achieve their home buying aspirations.”
