Atom Bank has announced a cut to its fixed-rate mortgages, offering a glimmer of hope to homebuyers struggling with rising interest rates.

The digital lender has reduced rates across its prime mortgage products by up to 0.15%, effective immediately. This means potential homeowners could save money on their monthly repayments.

What are the new rates?

Here’s a breakdown of Atom Bank’s new fixed-rate deals:

For those with a 5% deposit (95% LTV):

• 3-year fix: 5.59% (down from 5.74%) with no application fee
• 5-year fix: 5.24% (down from 5.34%) with no application fee

For those with a 10% deposit (90% LTV):

• 2-year fix: 5.54% (down from 5.69%) with a £900 fee
• 5-year fix: 5.04% (down from 5.19%) with a £900 fee

What about existing customers?

Good news for existing Atom Bank borrowers! The bank has also trimmed rates on its retention products by up to 0.15%.

This includes:

• 2-year fix: 5.64%
• 5-year fix: 4.99%

Both deals are available up to 75% LTV and come with no application fee.

Why the change?

Richard Harrison, Head of Mortgages at Atom Bank, explained that recent movements in “swap rates” – the rates banks charge each other for loans – have allowed them to pass on savings to customers.

He emphasised that this move will particularly benefit those with smaller deposits, who often find it tougher to secure a mortgage.