Its standard affordability rate for buy-to-let will decrease from 8.04 per cent to 7.38 per cent, while the five-year fixed affordability rate will fall from 6.54 per cent to 5.88 per cent.
The affordability rate for its pound-for-pound remortgage will be set at 5.88 per cent, also down from 6.54 per cent.
The changes will not apply to full mortgage applications submitted by 29 January but the new policy will apply to applications placed from 30 January.
Atom Bank cuts prime mortgage rates
Atom Bank has lowered prime mortgage rates by up to 0.25 per cent, including two, three and five-year fixed rates.
The digital bank has cut three-year fixed rates between 80 and 95 per cent loan to value (LTV) by up to 0.25 per cent with pricing beginning from 4.89 per cent.
Atom has also reduced two-year fixed rates at 90 and 95 per cent LTV by up to 0.2 per cent, with rates starting from 5.19 per cent.
Five-year fixed rates have gone down by around 0.15 per cent with pricing beginning from 4.54 per cent.
All the products come with a free valuation and remortgage products come with fee-assisted legals.
Richard Harrison, head of mortgages at Atom, said: “We are really pleased to be able to deliver yet another rate reduction to customers, cutting prices at higher LTVs as we continue to help this vital segment of the market.
“This latest round of cuts will make our mortgages even more accessible to a greater number of aspiring homebuyers and remortgagors, and behind all of our products is a speedy digital process that delivers increased certainty as well as excellent value.”
The lender lowered commercial rates to 5.75 per cent yesterday and reduced five-year fixed rates by up to 0.7 per cent at the start of the month.
