Atom Bank has announced a round of mortgage rate cuts, a move that could save borrowers thousands of pounds.
The cuts will affect both near prime borrowers (those with a less-than-perfect credit history) and prime borrowers with small deposits.
How Much Could You Save?
Rates on near prime mortgages are being cut by up to 0.25%, while 95% LTV prime products will see their rates reduced by up to 0.15%.
What does this mean in real terms? Let’s say you’re a near prime borrower taking out a £200,000 mortgage over 25 years. A 0.25% rate cut could save you over £10 per month or almost £3,000 over the lifetime of your mortgage.
Atom Makes Borrowing Easier
This news comes hot on the heels of several changes Atom Bank has made to make its lending criteria more flexible. This includes:
- Increased acceptable levels of unsatisfied, unregistered defaults from £1,000 to £2,500.
- Reduced timeframe for considering past defaults from three years to two.
- Higher maximum loan-to-income (LTI) ratios for borrowers with incomes of £75,000 or over. For example, those looking to borrow at 95% LTV can now borrow up to 5.5 times their income.
- Increased maximum LTV available on properties in London and the South East.
“Making Home Ownership a Reality”
Richard Harrison, head of mortgages at Atom Bank, said: “Atom Bank is passionate about going further in supporting borrowers who may have been poorly served traditionally. These rate cuts mean near prime borrowers and prime borrowers with small deposits have even more competitive products from which to choose and can benefit from the speedy service we are building a reputation for.”
He added: “We are committed to working closely with intermediaries to make the changes to our products and processes which mean we are easy to work with and continue to deliver for borrowers who want to make home ownership a reality.”
So, whether you’re a first-time buyer struggling to get on the property ladder or have a few blips on your credit history, Atom Bank could be worth considering for your mortgage.