Atom bank has announced it is decreasing the rates across a number of its mortgage products, with selected five-year products now available at below 5.00%.

The app-based bank confirmed cuts to rates on its two and five-year prime, retention and further advance mortgage products.

Several of Atom’s two-year products have seen the biggest rate reductions, which have been reduced by 0.30%. Two-year products now start from 5.14%, with five-year rates starting from as low as 4.89%, all of which are available to customers from today.

Following Atom’s latest £30m capital raise, the bank revealed it is now looking to accelerate its lending growth, and it is also increasing the maximum LTV for new-build houses from 85% to 90%.

Head of mortgages at Atom bank, Richard Harrison, commented: “Following our latest funding round, we are looking to ramp up our mortgage lending in the coming months. Some changes in the market and a recent fall in swap rates mean we can pass this benefit onto customers and offer them an even better deal.

“We’re here to give borrowers better value for money, which is so important given the current economic situation. We hope today's reductions will help those who are looking to remortgage and reduce their outgoings or take their first step onto the property ladder.

“Saving the deposit to buy a home remains one of the biggest hurdles people face today. We hope that by increasing the LTV for new build properties, we can help even more customers make their dream of home ownership a reality. It should also make newer, greener homes, which generally carry lower household bills, more attainable to more borrowers.”

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