Impact Specialist Finance  

Atom expands digital mortgage range

Atom expands digital mortgage range

Challenger bank Atom has added a two-year 75 per cent loan-to-value mortgage to its digital range and cut the prices on some other mortgage products.

The bank, which launched last year, is targeting £3bn of lending within three years of launch under the Digital brand, which allows customers to view the progress of their mortgage through an app.

In the app, customers can log-in with face and voice biometrics and track their decision in principle and application progress.

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The new rates include a two-year product for purchase and remortgage at 75 per cent loan-to-value (LTV) with a rate of 1.29 per cent and a fee of £900. There is also a five-year 75 per cent LTV product at 2.24 per cent with no fee.

Maria Harris, Atom's director of retail mortgages, said: “We are delighted to be expanding our range of products and to be improving our rates so soon after launching the new proposition.

"We have had brilliant feedback from our first wave of customers who greatly appreciate that our processes are easy to understand, with any fees being fair and transparent.

"With the launch of the new proposition taking off so well we are keen to continue improving our rates and the range of products we offer."

Atom Bank entered the mortgage market in December and claimed borrowers could receive an offer within 24 hours of their application.

The bank's products are available through LSL and Legal & General Mortgage Club but the lender's bosses have said they are keen to expand the number of brokers which distribute products.

Mike Fry, director of Halton Insurance Service in Cheshire, said that the rates were "really good".

Mr Fry said: "You have to be careful with products offering fees, though. In lots of cases lenders are just using the fees to subsidise low headline rates."