Atom Bank cuts prime and near prime rates by up to 0.20%

Atom Bank has reduced rates across both its near prime and prime product ranges.

Rates on Atom's prime range of two, three and five year fixed rates, available up to 90% LTV, have been cut by 0.20%, while all rates at 95% LTV have decreased by 0.10%.

In addition, two and three-year near prime fixed rates at 60% and 75% LTV have been reduced by 0.20%. The bank’s five-year fixed rates, available at the same LTV bands, have been cut by 0.15%. 

Earlier this year, Atom 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.

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.

The digital lender also recently 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.”