Atom bank is reducing the rates across a number of its mortgage products, with selected five-year products now available at below 5.00%.
Atom is cutting rates on its two and five-year Prime, Retention and Further Advance mortgage products. The biggest rate reduction is seen across several of Atom’s two-year products, which have been reduced by 0.30%. Two-year products now start from 5.14%, with five-year rates starting from 4.89%.
Following Atom’s latest £30m capital raise, the bank is now looking to accelerate its lending growth. A recent fall in swap rates means Atom is now able to offer further rate reductions to borrowers.
In addition, Atom is also increasing the maximum LTV for new build houses from 85% to 90%.
Atom hopes that the increase will provide additional support to borrowers, particularly first-time buyers, at a time when raising the deposit remains one of the biggest obstacles to home ownership. The move will also benefit brokers and the wider house building sector, as the government looks to tackle the UK’s chronic housing shortage, it says.
Richard Harrison, head of mortgages at Atom bank, said: “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.
“We’re here to give borrowers better value for money, which is so important given the current economic situation. We hope today’s reductions will help those who are looking to remortgage and reduce their outgoings or take their first step onto the property ladder.
“Saving the deposit to buy a home remains one of the biggest hurdles people face today. We hope that by increasing the LTV for new build properties, we can help even more customers make their dream of home ownership a reality. It should also make newer, greener homes, which generally carry lower household bills, more attainable to more borrowers.”