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Atom Bank pulls five-year 1.29% fixed rate mortgage

by: Joanna Faith
  • 19/04/2017
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Atom Bank is pulling its five-year fixed rate mortgage priced at 1.29%, just seven days after launching the promotion.  

The challenger bank dramatically cut rates on its five-year loans on 12 April, bringing them in line with its two-year deals.

Following “huge demand”, it is withdrawing the 60% LTV deal at 1.29% with a £900 fee or 1.64% without a fee, from midnight tonight.

In an exclusive interview with Mortgage Solutions, the lender admitted that its significantly lower rate deals would be limited with a “really short window”.

 

Continuously under review

Katy Ringsdore, head of PR at Atom, said: “Digital Mortgages by Atom Bank has seen huge demand for our market-leading five-year fixed rate mortgages and as a result we will be withdrawing the 60% LTV five-year fixed products at 0.01am on Thursday 20 April. Our rates, like everyone else’s, are continuously under review and subject to change.

“Customers who apply for the previous rate before midnight Thursday 20 April and have their application accepted, will of course be able to continue with their mortgage process under the rate.”

Borrowers with smaller deposits can still get a five-year deal for the same price as the two-year rate.

Those with a 25% deposit will pay 1.34% with a £900 fee or 1.74% without a fee, while someone with a 10% deposit will pay 1.99% with a £900 fee and 2.44% without a fee.

LTV Fee 2 year rate 5 year rate
60% With £900 fee 1.29% n/a*
60% Without fee 1.64% n/a*
75% With £900 fee 1.34% 1.34%
75% Without fee 1.74% 1.74%
80% With £900 fee 1.49% 1.49%
80% Without fee 1.89% 1.89%
85% With £900 fee 1.59% 1.59%
85% Without fee 1.99% 1.99%
90% With £900 fee 1.99% 1.99%
90% Without fee 2.44% 2.44%

*rates removed as of 00.01am on Thursday 20 April 2017

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