The changes, which came into effect yesterday, apply to a range of two and five-year fixed rate across 85 and 95 per cent loan to value (LTV) products in its prime range. Its prime range is aimed at those with a “perfect” credit history.
Its two-year and five-year fixed rate at 85 per cent LTV has been cut by up to 0.45 per cent, whilst it two and five-year fixed rate at 90 per cent LTV has decreased by up to 0.40 per cent.
Similar products at 95 per cent LTV has been reduced by 0.30 per cent.
The bank’s near-prime products, which were launched in June for those with a “less than perfect” credit history because of county court judgements, defaults and late payments, are now available at 65 and 75 per cent LTV.
Its two-year fixed rate at 75 per cent LTV has fallen by up to 0.55 per cent and its five-year fixed rate has gone down by up to 0.50 per cent. They are available with fee and no-fee options, and cashback can apply to some products.
Paula Mercer (pictured), head of intermediary lending at Atom Bank, said: “The initial uncertainty of lockdowns may have caused customers to default or miss loan payments. Where mainstream banks and traditional lenders may deny mortgage applications due to indiscretions made over a year ago, our near prime package was curated to meet the needs of these customers.”
She added that despite being a relatively new entrant to the near prime market, its digital offering, speed of service and criteria would set them apart from their competitors.