Atom bank has reduced rates across both its Near Prime and Prime product ranges, effective from today (26th September).
Rates on the bank’s Prime range of 2-year, 3-year and 5-year fixed rates, available up to 90% loan-to-value (LTV), have been cut by 0.20%.
All Prime mortgages available up to 95% LTV have been reduced by 0.10%.
On its Near Prime range, 2-year and 3-year fixed rates at 60% and 75% LTV have been reduced by 0.20%.
The bank’s 5-year fixed rates, available at those same LTV bands, have been cut by 0.15%.
These latest rate reductions were the second batch of cuts made by Atom bank in September.
Earlier this year, Atom bank increased the maximum loan-to-income (LTI) on loans of up to 90% LTV to six-times for applicants with incomes of £75,000 or over.
For applicants with that income looking to borrow at 95% LTV, Atom bank will lend up to 5.5-times the income.
Atom also increased the maximum LTV available on properties in London and the South East.
The maximum LTV rose from 90% to 95% for both existing flats and new-build houses, and from 80% to 90% for new-build flats.
The digital lender improved its Near Prime criteria, more than doubling the level of acceptable unsatisfied, unregistered defaults to £2,500 from £1,000.
The bank also cut the timeframe in which defaults are taken into account from three years to two.
Richard Harrison, head of mortgages at Atom bank, said: “We are delighted to announce our second batch of rate cuts this month.
“Our continued focus on price demonstrates how determined Atom bank is to going further in providing tangible support to those who need it most, but who are not being adequately served by many high street mortgage lenders.
“The combination of rate cuts and ongoing criteria improvements, which have often led the way in the market, are making a tangible difference to brokers and their clients and we will continue to make changes wherever necessary to ensure we remain the go-to choice for intermediaries.”
