Atom bank has reduced interest rates across its Prime residential mortgage range, effective immediately.
Rates have dropped by 0.10%, bringing the 95% loan-to-value (LTV) rates to 5.59% for a 2-year fix, 5.44% for a 3-year fix, and 5.24% for a 5-year fix.
This reduction aims to support potential homebuyers and those looking to remortgage.
Rates on Further Advance and Retention products were also cut by 0.10%.
The changes were intended to assist borrowers aiming to move forward with purchases or refinancing before the upcoming Christmas break.
Furthermore, Atom bank expanded its Near Prime criteria, doubling the acceptable unsatisfied register defaults to £2,500 and reducing the ‘look back’ period for defaults from three years to two.Â
The bank extended its criteria to provide more support to borrowers by increasing the maximum loan-to-income (LTI) limit to six-times income for those earning above £75,000 and raising LTV limits on flats and new-build properties in London and the South East.Â
Richard Harrison, head of mortgages at Atom bank, said: “I have no doubt that this rate reduction will be warmly welcomed by brokers and borrowers alike.
“These cuts mean that Atom bank continues to offer incredible value to Prime borrowers, particularly those with only a modest deposit, who are looking to raise the funds for a purchase, to remortgage, or simply to obtain a further advance.
“These rate cuts go hand in hand with our recent criteria improvements, increasing income multiples to six times income for those earning above £75,000 and maximum LTVs to 95% on new-build houses in London and the South East, and are driven by our desire to deliver for a greater number of borrowers who may have been underserved elsewhere.
Harrison added: “The combination of keen pricing, cutting edge technology and a laser-like docus on working faster and more efficiently is helping Atom bank build a strong reputation with brokers.
“The fact that we have been named best bank in the Smart Money People Mortgage Lender Benchmark for H2 of 2024 – our third straight win – shows how our products and processes are resonating with advisers and their clients.
“We are determined to maintain that momentum in 2025 and beyond.
