Challenger bank Atom has launched a range of two-year fixed rate deals for remortgagers.
At 60 per cent loan-to-value (LTV), the lender is offering a 1.09 per cent interest rate with a £900 product fee and 1.39 per cent without a fee.
Borrowers with a 25 per cent deposit can opt for a rate of 1.12 per cent with a £900 fee and 1.49 per cent without a fee.
Atom Bank’s Digital Mortgages are available through its panel of registered intermediaries.
Lisa Wood, chief marketing officer at Atom Bank, said: “We are always on the lookout to be able to offer customers great rates, so we’re delighted to be able to bring our two-year fixed rate deals back on sale for 60 per cent and 75 per cent LTVs.
“We’re offering marketing-leading rates across all of our two-year no fee re-mortgage products, as well as competitive rates if customers want to pay a fee to secure a lower rate.”
The product launch comes amid a surge in remortgaging as borrowers look to secure favourable deals before an expected rise in interest rates.
According to UK Finance, remortgaging was up 20 per cent year-on-year in September.
Daniel Bailey, principal at Derbyshire-based Middleton Finance, said: “All the rates are competitive with the rest of the market.
"It is nice to see they are offering a deal with a fee and without, because it is important to compare not just the rates but also consider the fee as well.
“For someone looking to remortgage, taking into account an arrangement fee is important because it may be the more cost effective option - which is where a good mortgage broker comes in to recommend the better deal for you.”
simon.allin@ft.com
