Atom Bank has cut rates across its prime and near prime mortgage ranges.
Rates have been reduced by up to 0.10% on the lender’s prime mortgage products, and by up to 0.15% on near prime products.
As a result of these reductions, prime mortgage products now start at 4.94%, while near prime rates are available from 5.04%.
The rate cuts follow the recent introduction of a raft of new near prime products with a £1,500 fee, providing a wider level of choice to brokers and their clients.
Alongside the new lower rates, Atom has extended the range of products available with a £1,500 fee to include three and five-year fixed rates at between 60% and 80% LTV. The £1,500 fee products account for over 40% of Atom’s near prime demand since launch last month, and have proven particularly popular with borrowers with higher borrowing needs.
If a near prime borrower reaches the end of their term and they have sufficiently improved their circumstances, they will automatically be offered a prime product at maturity. Over the past 12 months, Atom says the majority of near prime borrowers have been offered a prime product at the end of their fixed term.
Richard Harrison, head of mortgages at Atom Bank, said: “I am delighted to announce another raft of rate cuts for both our prime and near prime mortgages. Atom Bank is committed to delivering great value to borrowers, even if they have an imperfect credit history, and I’m certain brokers will welcome this latest round of rate cuts.
“We continue to set internal records for near prime activity on a regular basis. This is testament to the improvements we have made to criteria over the last year, as well as our ability to provide borrowers with an easy app based journey and clear pathway back to prime, something many specialist lenders cannot deliver.”
