Atom Bank has announced reductions in rates for a number of its products, including five-year mortgages, many of which are now available to borrowers with interest rates of less than 5%.
The bank has confirmed that rates are being reduced across its slate of further advance, retention, five and two-year prime mortgage products. It is some of the lender’s two-year loans that will have their rates cut by the largest amount. They will now be on offer with rates that are 0.30% lower than before.
What it means is that the starting rate for Atom Bank two-year mortgages will now be 5.14%. For the bank’s five-year products, the starting rate will now be set at 4.89%, which could prove attractive to a number of borrowers.
Atom Bank has also confirmed that its top loan-to-value (LTV) rate for new build properties is being raised. This will be set at 90% from now on, whereas before it was 85%. It is arguing that this will help all people seeking a mortgage but particularly ones who are trying to buy their first home.
Richard Harrison, its mortgages head, told Mortgage Strategy that:
“Following our latest funding round, we are looking to ramp up our mortgage lending in the coming months. Some changes in the market and a recent fall in swap rates mean we can pass this benefit onto customers and offer them an even better deal.”
Following several months in which rates have been rising, this will be welcome relief to anyone with the CeMAP qualification.