Newly-authorised Atom Bank has set out its stall for mortgage brokers, promising that its lack of traditional infrastructure will enable competitive pricing and increased transparency.
The challenger bank’s intermediary exclusive range is coming this summer, along with paying the same level of procuration fee for product transfers and further advances, as it will for new business.
Atom stated it is aiming for the mainstream market, with a proposition spanning new-build, shared ownership, contractor and self-employed mortgages, along with products which offer lending into retirement.
All these will come under its intermediary brand, Digital Mortgages by Atom Bank. Maria Harris, head of intermediary mortgage sales, told FTAdviser that the lack of a branch network means savings can be passed on to brokers and their clients.
“Having a digital structure gives us a different cost base and also means we can be really transparent with customer data, criteria and fees, which all help to build trust with the adviser community.”
Distribution will be limited during the early months, while systems and processes are tested, before gradually rolling the range out to the wider market. Products will also be restricted to a group of selected brokers in the first phase of the launch, to help to shape criteria for the full range of deals.
Ms Harris promised that there are no plans for in-house advisers and no immediate plans for any execution-only business. In terms of building the broker base, there will be seven regional business development managers, giving full UK coverage at launch, backed by a phone and web-chat team in Durham.
“For brokers there will be none of the normal challenges they face with lenders, no cross-selling or dual pricing, we’re looking to just be the facilitator between customers and their money,” she added.
No set date was given on launch, as a certain amount of retail deposits need to come in before any lending begins.
Atom was granted its restricted banking licence in June last year and now has a full, unrestricted licence to offer personal and business banking services.
Chief executive Mark Mullen and chairman Anthony Thomson started the challenger bank in April 2014 and have since then raised in excess of £135m in capital through over 100 private and institutional investors, including Woodford Investment Management, which holds the largest equity stake.
The bank now has 160 permanent employees and a network of partners, mostly based in the North of England.
Last month, technology provider Iress revealed it was working with Atom to develop a platform that ensures its mortgages were approved in hours rather than weeks. The bank will be the first client to implement the latest version of its mortgage sales and origination product.
peter.walker@ft.com
