Newly authorised Atom Bank has set out its stall for mortgage brokers with bosses promising competitive pricing.
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.
Maria Harris, head of intermediary mortgage sales at Atom Bank, said it is aimed at 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.
Ms Harris said the lack of a branch network meant savings could be passed on to brokers and their clients.
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 were 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.
She said: “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.”
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 .
Chief executive Mark Mullen and chairman Anthony Thomson started the challenger bank in April 2014 and it has since then raised in excess of £135m in capital through more than 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.
Adviser view
Pete Mugleston, director of Online Mortgage Advisor, said: “It is great that new lenders are coming to market and considering the needs of brokers.
“The fact that Atom won’t be dual pricing and will be offering payment on product transfers and further advances is great to hear, as so many of the high street expect brokers to provide this service free of charge.”
peter.walker@ft.com
