By Atom bank, the UK’s first app-only bank, has reduced rates across both its Near Prime and Prime product ranges.
The rate reductions, which take effect from today, mean that the bank is delivering ever greater support to those in need of a helping hand accessing the housing ladder. Atom bank increased the maximum loan-to-income (LTI) to six times income for eligible borrowers in August, a move since followed by a number of other lenders, as well as improving the maximum LTVs available in London and the South East, the most expensive area of the country.
These latest rate reductions – the second batch of cuts made by Atom bank in September alone – demonstrate the bank’s commitment to providing better value and supporting underserved borrowers on their home buying journey.
Prime rate reductions
Rates on Atom bank’s Prime range of two, three and five 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%, another example of how Atom bank is going further in supporting those with modest deposits who are looking to buy.
Earlier this year, Atom bank increased the maximum LTI achievable on loans of up to 90% LTV to six times income, 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.
Alongside the LTI improvements, 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.
Going further to support Near Prime borrowers
In addition, Atom bank has announced a host of cuts to its Near Prime product range.
Two and three-year fixed rates at 60% and 75% LTV have been reduced by 0.20%. The bank’s five-year fixed rates, available at those same LTV bands, have been cut by 0.15%.
Atom bank has repeatedly improved its Near Prime proposition to support the growing number of borrowers with a payment issue on their credit record, a particularly underserved area of the market.
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, commented:
“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.”
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