Challenger bank Atom Bank is entering the buy-to-let mortgage market with an exclusive pilot product, available through intermediaries.
The company is offering two- and five-year tracker products for portfolio buy-to-let landlords with between four and 25 properties in their portfolio.
Atom Bank said it is planning to extend its range further with some fixed rate products being in the works for the future.
The two-year tracker is available for remortgages at 75 per cent loan-to-value at a rate of 2.95 per cent above the Bank of England base rate, while the five-year product has an interest rate of 3.05 per cent above the base rate. Both products have a one per cent product fee and a maximum loan term of 25 years.
During the pilot, some brokers will be able to offer their clients no early repayment charges and automated valuations.
Atom Bank’s Maria Harris, director of intermediary lending, said: "As our mortgage proposition grows, we want to transform this market, making mortgages easy and transparent to buy and offering landlords a great all-round deal.
"The initial pilot with a select number of intermediaries will help us make real-time improvements before we roll out to a wider audience. We’re also already working on extending the range to include fixed rate products."
Digital Mortgages by Atom Bank launched its business banking secured lending service in April 2016 and followed that with a suite of residential mortgages in December 2016.
Duncan Goodacre, a mortgage broker at Harlow-based County Mortgage Services, is among the intermediaries to have used products offered by the lender and welcomed the addition to Atom’s range.
"When they first started, we used them and got quite a bit of business through. I think they were inundated," he said.
Mr Goodacre said the new portfolio buy-to-let range was "as good as anything else" on the market.
He added: "If they are in the top of three on the sourcing system, then we would consider them. It all comes down to whoever is in the top three."
