Atom Bank has announced it’s making it easier for first-time buyers to get a mortgage, especially those buying in London and the South East.

The bank is increasing the maximum amount it will lend compared to a borrower’s income. This is known as the loan-to-income ratio (LTI).

For example, someone earning £75,000 a year could borrow up to six times their salary. This means they could potentially borrow as much as £450,000, making it easier to afford a property.

Help for Buyers in Pricey Areas

Atom is also making it easier for buyers to get a mortgage on properties in London and the South East, where prices are highest. The bank has increased the maximum loan-to-value (LTV) it offers on flats and new builds in these areas.

This means buyers will need a smaller deposit. For instance, on existing flats and new-build houses, the maximum LTV has risen from 90% to 95%. This means buyers would only need a 5% deposit.

Why is Atom Making These Changes?

Richard Harrison, Head of Mortgages at Atom Bank, said: “First-time buyers are the lifeblood of the housing market – without them, it doesn’t function properly. Yet would-be buyers face two significant challenges today, first in saving the initial deposit and then meeting affordability requirements.”

These changes are designed to help more people achieve their dream of owning a home.

“Higher LTI caps are an effective way to lend responsibly to those who can truly afford the repayments, not just now but in the years to come,” Harrison added.

These changes are effective immediately, so if you’re considering buying a home, it might be worth talking to Atom Bank to see how they can help.