Atom bank is the latest lender to trim the cost of its fixed rate products, with reductions across its prime and near prime range.
On its prime range the digital bank has cut its two-year fixes by up to 20 bps, its three-year fixes by 10 bps and its five year rates by up to 15 bps. Its new five year fixed rate range will now start at 5.29%.
On its near prime products rates up to 85% LTV have been reduced by 20 bps, while rates up to 60% LTV cut by 15 bps.
Atom bank recently raised £100m in a bid to accelerate its lending, and says these latest rate cuts will help it to continue to challenge more established lenders in these sectors.
Atom bank head of mortgage Richard Harrison says: “In three months, we have reduced rates six times, ensuring we pass on swap rate decreases as quickly as possible. so that borrowers can benefit immediately.
“We also continue to look at the pricing of our near prime range, making sure customers who may have experienced credit issues in the recent past continue to get the best possible deal.”
Harrison said that as a digital app-based bank Atom was able to deliver cost efficiencies, enabling it to offer value to a wide range of customers.
