Atom Bank, known for its digital banking services, has announced significant reductions in its mortgage rates. This strategic decision doesn’t just benefit those with spotless credit records, but also extends an olive branch to individuals with less-than-perfect credit histories.

Making Homeownership More Accessible

Atom Bank is levelling the playing field by implementing substantial rate cuts on a selection of its Prime and Near Prime mortgage products. Here’s what the new adjustments mean:

• Prime Rate Reductions: These are targeted at customers with strong, or “prime,” credit histories. The reductions are quite substantial, with rates being slashed by up to 0.25% across 60-90% Loan-To-Value (LTV) ratios. Specifically, customers will see 2- and 3-year mortgage rates decrease by up to 0.25% and 0.20%, respectively, while 5-year rates will experience a reduction of up to 0.15%.
• Near Prime Rate Reductions: With cuts of up to 0.10%, these are designed for customers who don’t quite meet the stringent credit score requirements typically demanded by lenders. This “near prime” category often includes individuals who have faced financial challenges in the past but are on their way to financial recovery.

A Closer Look at Atom Bank’s Strategy

What’s particularly notable about Atom Bank’s approach is how quickly they’ve moved to pass recent reductions in swap rates (the fixed rate that banks are willing to exchange for a variable rate) directly down to the customers. This is not just a boon for borrowers with clean credit slates, but also extends to those with less-than-ideal credit histories, offering a glimmer of hope to individuals who might have previously found the doors to property ownership firmly closed.

Richard Harrison, Head of Mortgages at Atom Bank, emphasised the bank’s dedication to broadening access to the property ladder. The commitment isn’t just in words, but in actions that underscore a fundamental objective of the bank: to deliver the best value to customers as promptly as possible.

“In the face of rising living costs, which continue to burden numerous households, it’s more critical than ever to provide financial solutions that not only make homeownership attainable but also offer relief to both prime borrowers and near-prime borrowers who have previously stumbled upon financial hurdles,” Harrison explains.