Atom bank has cut interest rates on its prime residential mortgage range. The rates have been reduced by up to 0.20% across the digital bank’s suite of 2-, 3- and 5-year fixed rates, with the largest cuts applied to those at 95% loan-to-value (LTV).

The reductions mean that borrowers with a 5% deposit can now obtain a 2-year or 3-year fixed rate from 5.14%, without a product fee, while 5-year fixed rates are available from 5.09%.

The reduced rates come into effect immediately.

PRIME BORROWER VALUE

Atom bank has repeatedly reduced rates whenever possible, providing Prime borrowers with more competitively-priced options. This is the fourth rate cut so far in 2025, and follows hot on the heels of a price reduction in mid-April.

Richard Harrison (main picture), Head of Mortgages at Atom bank, said: “We know brokers love our service and speed, so I’m delighted that we have been able to further reduce rates on our Prime mortgages once again.

“This is particularly important for borrowers with small deposits who may have tighter budgets and do not benefit from the widest range of choice.”

FIRST STEPS

He added: “The fact that our largest reductions apply to products for borrowers with only a 5% deposit shows our commitment to supporting those taking their first step onto the housing ladder, who often need to borrow at higher LTVs.

“We will continue to reduce rates wherever possible, and combine this with the market-leading speeds for which Atom bank has become renowned within the intermediary market.”