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Atom Bank cuts mortgage rates and launches new product

Atom Bank cuts mortgage rates and launches new product
Christina Hoghton
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Christina Hoghton

The app-based lender has chopped rates by up to 0.3 percentage points across its 'near prime' mortgage range.

Atom Bank also introduced new three-year fixed rate mortgages to the range.

Near prime mortgages are for those borrowers who just fall out of mainstream (or prime) lending. This might be because of a minor credit blip, for example.

What’s changed?

Atom’s two-year fixed mortgage rates are being reduced by up to 0.3 percentage points.

The lender’s five-year fixed rates are being cut by between 0.15 percentage points and 0.3 percentage points.

Two-year fixed rates now start at 6.14%, while five-year fixed rates start at 5.64%.

The new three-year fixed rate near prime range has been introduced to give borrowers a wider range of options.

Rates start at 5.99%, with mortgages available between 60% and 85% of the property’s value.

Richard Harrison, head of mortgages at Atom Bank, said: “We are delighted to confirm these rate reductions to our near prime range, as well as the launch of a new three-year product to provide further choice.

“The challenges of recent years have put household budgets under pressure, and will inevitably result in more borrowers with credit blips falling into the near prime category. That’s why Atom Bank is committed to delivering not only competitive products for these borrowers, but the best possible experience too.”

Related: What the latest inflation announcement means for mortgages