Mortgages  

Atom Bank seeks capital to grow mortgage market share

Atom Bank seeks capital to grow mortgage market share

Digital challenger Atom Bank is looking for new investment to sustain its rate of growth in the mortgage market.

The company entered the mortgage market nearly a year ago offering residential, remortgage and lending into retirement products.

A spokesman for the company said its lending has been "growing strongly" so Atom Bank is seeking more capital to sustain this rate of growth.

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She did not comment on how much investment the bank was seeking but said the bank expects most of it to come from its existing investors first.

Spanish bank BBVA is currently Atom Bank's biggest backer, holding a 30 per cent stake in the company.

Other backers include Neil Woodford and Toscafund and all three increased their investments in the bank earlier this year as part of a funding round.

Atom Bank, which recently announced it had secured £900m in deposits in its savings accounts, hired pop star will.i.am as a "strategic adviser" earlier this year.

The Black Eyed Peas member advises Atom Bank’s board but no other details have been provided on his role.

Atom obtained its banking licence in June 2015 and launched the new bank in April last year with two market-leading fixed saver accounts.

The company entered the mortgage market in December 2016 saying its digital processes would mean borrowers could receive an offer within 24 hours of their application.

damian.fantato@ft.com