It also raises the maximum LTV for new build houses
Digital lender Atom bank has lowered rates across a number of its mortgage products, with selected five-year products now available at below 5%.
The bank is cutting rates on its two- and five-year Prime, Retention, and Further Advance mortgage products, with the biggest rate reduction 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 as low as 4.89%, all of which were available to customers from yesterday - Wednesday, November 30.
With Atom’s latest £30 million capital raise, the bank wants to accelerate its lending growth. The lender said a recent fall in swap rates means it is now able to offer further rate reductions to borrowers. Atom is also increasing the maximum LTV for new build houses from 85% to 90%.
“Following our latest funding round, we are looking to ramp up our mortgage lending in the coming months,” Richard Harrison (pictured), head of mortgages at Atom bank, commented. “Some changes in the market and a recent fall in swap rates mean we can pass this benefit on to 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 on to the property ladder.
“We also hope that by increasing the LTV for new build properties, we can help even more customers make their dream of homeownership a reality. It should also make newer, greener homes, which generally carry lower household bills, more attainable to more borrowers.”
