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Atom makes raft of criteria changes and cuts rates

  • 24/08/2023
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Atom makes raft of criteria changes and cuts rates
Digital bank Atom has increased its maximum loan for its prime products, raised self-employed income multiples, upped allowable variable income limits and cut mortgage rates to improve affordability.

The lender has increased the maximum loan to £1m for 80 and 95 per cent loan to value (LTV) prime products and to £750,000 for 90 and 95 per cent LTV prime products.

Income multiples for self-employed applicants have gone from 4.49x to 5.5x for those with single income of £75,000, or a joint income of £100,000.

The firm has increased the allowable variable income limit from 50 per cent to 70 per cent.

The lender has also lowered selected prime rates by up to 0.25 per cent.

Atom said that it made the changes to “cater for customers who don’t qualify for products attached to the mortgage guarantee scheme”, which is capped at a property value of £600,000.

It added that it hoped the change to its maximum loan amount would help those in London and the South East, where average house prices stand at £528,000.


Atom: ‘Making homeownership easier’

Richard Harrison, head of mortgages at Atom, said: “We are always looking to enhance our proposition so it’s easier for people to make home ownership a reality, so it’s great to be announcing the criteria changes we have made alongside some rate reductions, which we think can make a significant impact.

“Clearly, it’s tough for buyers right now, with financial headwinds making it difficult to make the leap from renter to homeowner. We think the increased max loan amount can help a lot of first-time buyers, particularly those who won’t qualify for products attached to the mortgage guarantee scheme.”

He continued: “This will also benefit those customers living in places like London and the South East, where house prices tend to be higher.

“Affordability for the self-employed and those with variable income can also be a particular challenge in these regions, so we hope the changes we have made for these groups will make getting on the ladder that little bit easier for them.”

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