Atom bank has announced further rate cuts across its prime and near prime mortgage ranges, trimming rates by up to 0.10% on prime products and up to 0.15% on near prime products, with the changes taking immediate effect.
Following the reductions, prime mortgage rates now start from 4.94%, while near prime products begin at 5.04%. The move comes just weeks after the digital lender launched a series of new near prime products carrying a £1,500 fee.
These fee-based products, which include three and five-year fixed rates at between 60% and 80% loan-to-value, have already proved popular, accounting for more than 40% of near prime demand since their introduction last month.
Atom said July had been the most successful month on record for its near prime range, a performance it attributed to competitive pricing, wider product choice and higher LTVs.
The bank has repeatedly lowered rates across both ranges this year, saying the changes underline its aim to deliver “outstanding value” to borrowers, whether they have an unblemished credit record or have experienced temporary difficulties.
Atom’s near prime offering is designed to help borrowers improve their credit standing. Customers who reach the end of their term and meet the bank’s criteria are automatically moved onto a prime product at maturity.
According to Atom, most near prime borrowers over the past 12 months have been able to make the switch.
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.”