Atom Bank has made a strategic move by reducing rates across its prime mortgage range for residential customers. This reduction specifically targets low LTV rates, which have been cut by up to 0.20%. A key highlight is the five-year fixed rate at 60% LTV, now starting from 4.84%, accompanied by a £900 fee.

But what exactly does this mean? A lower LTV rate means that the amount you borrow is a smaller percentage of your property’s value, which typically qualifies for a lower interest rate. So, if you’re considering a mortgage with a higher deposit or equity in your property, these new rates could be particularly advantageous.

Details of the New Rates

• Two-Year Fixed Rates: Starting from 5.29%.
• Three-Year Fixed Rates: Starting from 5.14%.
• Five-Year Fixed Rates at 60% LTV: Now from 4.84%.

Additionally, all the reduced products include a free property valuation, and remortgage products come with fee-assisted legal services.

The Implications for Remortgaging

According to Richard Harrison, head of mortgages at Atom Bank, this move aims to support customers with lower LTV and provide a stronger incentive for remortgaging. Remortgaging can be a strategic move for homeowners looking to take advantage of better interest rates, release equity, or reduce monthly repayments. With these new rates, Atom Bank is making remortgaging more attractive, especially for those with substantial equity in their property.

A Trend of Rate Cuts

It’s noteworthy that this is the seventh set of rate cuts introduced by Atom Bank since August, signaling a consistent effort to offer more competitive rates. This trend is a positive sign for borrowers, indicating a responsive and dynamic mortgage market.

The Broader Impact

Harrison highlights that their 60% LTV five-year products, now priced below 5%, are expected to be well-received by brokers and their clients. Given the rate trends over the past year, this is a competitive offering in the current market.

Atom Bank’s Strategy

Atom Bank’s approach emphasizes speed, ease, and value for their intermediary partners and clients. These reductions reflect their ongoing commitment to lending, backed by a strong service proposition.