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Atom lent £100m in Q1 and passes £3bn mortgage lending milestone

  • 10/08/2021
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Durham-based digital bank Atom reported its first monthly operating profit in Q1 and lent £346m in mortgage completions in the year to March 2021.


The intermediary advice-led mortgage provider, which launched in 2016, also completed £100m of mortgages in the first three months of this year.

From April 2016 to June 2021, Atom reached £3bn of mortgage completions, passed £1bn of deposits into its instant saver product and grew total customer deposits 16 per cent to £2.5bn.

Paula Mercer, head of intermediary lending at Atom Bank (pictured), said all our customers come through a broker in the first instance because we believe customers should get strong and impartial advice.

“All our business is both via brokers and via the app. To progress their application our customers have to download the app which then guides them through the key stages and information points on the mortgage journey. And because the app is linked to our digital decisioning and onboarding processes, customers get a quick decision – it can be 13 seconds – and can track every stage of their application.”

Mercer said the bank is happy to go ‘toe-to-toe’ with other lenders on the basis of price and service.

“We think this works for everyone – we bring competition to the marketplace, we give brokers a better choice and customers get an in-app and informed journey from initial application right through to completion,” she added.

The bank launched near prime mortgage products in June this year to support customers who might struggle down traditional lending routes after a CCJ, missed payment or past default.

The provider has also updated its mortgage originations platform for residential applications and expanded its use of Automated Valuation Models (AVMs) to use on purchase and remortgage business up to and including 90 per cent LTV.

“We’ve also allowed the option for self-serve pre-contract variations (PCVs), both of which improve the ease of use for our network of brokers,” said Mercer.

Mark Mullen, chief executive officer at Atom, said these results reinforce Atom’s expectation of generating sustainable, month-on-month operating profit this year.

“We have momentum – it’s been an outstanding quarter for Atom. We have achieved several important milestones and continued to drive the growth of our savings and loans. We have also maintained our reputation for exceptional service – a key focus for us in that it remains a challenging time for our customers, our people and the country as a whole.”

Meanwhile, the quarterly results confirm growth of 16 per cent in business lending taking it to a total of £759m. Coupled with nine per cent growth in the bank’s residential mortgages, Atom’s income from lending is on track to support its targeted return on equity of +24 per cent, it said.

Margins and returns on lending remain strong, it said, with a quarter-end net interest margin of 1.30 per cent, up from 1.02 per cent at the last quarter-end.

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