It also reduces rates on two different product types
Digital lender Atom bank has implemented a number of policy changes and cut rates to support customers looking to remortgage or make their first step on to the property ladder.
The lender said it is increasing the offer validity period for its remortgage and purchase products to six months. This includes all application types across purchase, remortgage, retention, further advance, and near prime.
Atom will extend any new and current offers to six-month validity where requested. The bank is also increasing the time that brokers are able to start the product transfer process to six months before their customers’ current deal expires across all products.
The increase in offer validity and product transfer periods, Atom bank said, are designed to support customers in a challenging market environment.
“Borrowers are facing a challenging period, with higher interest rates and household costs, so we’re making changes that can make a genuine difference,” Richard Harrison (pictured), head of mortgages at Atom bank, commented. “Given the recent volatility in mortgage pricing and general uncertainty facing household budgets, customers are understandably keen to secure a new fixed rate well in advance of their current deal expiring.
“The increase in offer validity and product transfer periods applies to both new and existing customers, providing them with the peace of mind to lock in their deal early and leaving them less susceptible to potential rate increases before their deal ends.
“Crucially, the offer validity also extends to purchases, providing comfort for prospective homeowners during this more uncertain period, where there is potentially a higher risk of chains falling through.”
Bank cuts mortgage rates
In another move, Atom bank has introduced lowered rates for its two-, three-, and five-year purchase and remortgage products. The rates were reduced by up to 0.35% across the entire range.
Details of Atom bank’s new rates are as follows:
- Three-year fixed rate of 4.69% to May 31, 2026 at 60% purchase with a £900 fee
- Three-year fixed rate of 4.69% to May 31, 2026 at 60% remortgage with a £900 fee
- Five-year fixed rate of 4.34% to May 31, 2028 at 60% purchase with a £900 fee
- Five-year fixed rate of 4.34% to May 31, 2028 at 60% remortgage with a £900 fee
- Five-year fixed rate of 4.54% to May 31, 2028 at 80% purchase with a £900 fee
- Five-year fixed rate of 4.54% to May 31, 2028 at 80% remortgage with a £900 fee
- Five-year fixed rate of 4.69% to May 31, 2028 at 80% purchase with no fee
- Five-year fixed rate of 4.69% to May 31, 2028 at 80% remortgage with no fee
Last month, the bank also lowered rates across some of its mortgage products, putting selected five-year products below the 5% rate.
“The policy changes, alongside our reduced rates, ensure that we are able to support a broad range of borrowers effectively, from those looking to remortgage and reduce costs, to people who are looking to make their dream of homeownership a reality,” Harrison said.
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