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Digital Mortgages by Atom bank enter Portfolio Buy to Let market

05 November 2018

FOR IMMEDIATE RELEASE: Monday 5th November 2018

Digital Mortgages by Atom bank enter Portfolio Buy to Let market

Digital Mortgages by Atom bank has today announced they are entering the Buy to Let mortgage market with an exclusive intermediary pilot.

Initially the range will include 2 and 5-year tracker Portfolio Buy to Let remortgage products for landlords who have between 4 and 25 properties in their portfolio. Competitive interest rates will be offered with a 1% product fee and maximum loan term of 25 years.

Rates at launch include a 2-year base rate tracker, 75% LTV Remortgage at 3.70% (tracking at 2.95% above base rate); and a 5-year base rate tracker, 75% LTV Remortgage at 3.80% (tracking at 3.05% above base rate).

Selected brokers and their customers will also have access to no Early Repayment Charges and automated valuations will be used wherever possible to speed up the process and keep costs low.

Maria Harris, Director of Intermediary Lending at Atom bank said: “We are delighted to announce our launch into the portfolio buy to let market. 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 first launched Business Banking Secured Lending when they launched in April 2016, followed by residential mortgages in December 2016. It has now lent over £1.8bn to small businesses and homeowners. More information can be found on the dedicated website https://business.digitalmortgages.net/

ENDS

Note to Editors

Loan size up to and including £850,000

2Yr Base Rate Tracker 3.70% until 31/12/20. 75% Remortgage.
Under £850k. 1% fee

  • Initial rate (%) (inc. BoE BR)- 3.70*
  • SVR (%)- 5.00
  • APRC (%)- 4.60
  • Product Fee (% of loan)- 1.00%
  • Early repayment charge- None

2Yr Base Rate Tracker 3.85% until 31/12/20. 80% Remortgage.
Under £850k. 1% Fee.

  • Initial rate (%) (inc. BoE BR)- 3.85*
  • SVR (%)- 5.00
  • APRC (%)- 4.62
  • Product Fee (% of loan)- 1.00%
  • Early repayment charge- None

5 Yr Base Rate Tracker 3.80% until 31/12/23. 75% Remortgage.

  • Initial rate (%) (inc. BoE BR)- 3.80*
  • SVR (%)- 5.00
  • APRC (%)- 4.95
  • Product Fee (% of loan)- 1.00%
  • Early repayment charge- None

5 Yr Base Rate Tracker 3.95% until 31/12/23. 80% Remortgage.
Under £850k. 1% Fee.

  • Initial rate (%) (inc. BoE BR)- 3.95*
  • SVR (%)- 5.00
  • APRC (%)- 5.00
  • Product Fee (% of loan)- 1.00%
  • Early repayment charge- None

Loan size over £850,000

2 Yr Base Rate Tracker 4.00% until 31/12/20. 75% Remortgage.
Over £850k. 1% Fee.

  • Initial rate (%) (inc. BoE BR)- 4.00*
  • SVR (%)- 5.00
  • APRC (%)- 4.63
  • Product Fee (% of loan)- 1.00%
  • Early repayment charge- None

2 Yr Base Rate Tracker 4.70% until 31/12/20. 80% Remortgage.
Over £850k. 1% Fee.

  • Initial rate (%) (inc. BoE BR)- 4.70*
  • SVR (%)- 5.00
  • APRC (%)- 4.72
  • Product Fee (% of loan)- 1.00%
  • Early repayment charge- None

5 Yr Base Rate Tracker 4.10% until 31/12/23. 75% Remortgage.
Over £850k. 1% Fee.

  • Initial rate (%) (inc. BoE BR)- 4.10*
  • SVR (%)- 5.00
  • APRC (%)- 5.04
  • Product Fee (% of loan)- 1.00%
  • Early repayment charge- None

5 Yr Base Rate Tracker 4.75% until; 31/12/23. 80% Remortgage.
Over £850k. 1% Fee.

  • Initial rate (%) (inc. BoE BR)- 4.75*
  • SVR (%)- 5.00
  • APRC (%)- 5.23
  • Product Fee (% of loan)- 1.00%
  • Early repayment charge- None

The list of organisations on the select panel are:

  • Mantra Capital
  • Aspire Commercial Finance t/a SWBF
  • Platinum Money
  • Newsource Commercial Finance
  • Mortgage & Finance Arena
  • Crystal Mortgages ltd

After securing its banking license in June 2015, Atom bank launched operations in April 2016, offering market-leading Fixed Saver accounts and secured business lending for small and mediumsized enterprises (‘SMEs’). From the start, Atom set out to build a customer- driven bank, designed to meet their new needs and optimised for mobile technologies.

Atom bank launched its first mobile mortgage product in December 2016 and has taken over £1.7bn of deposits and lent over £1.8bn to small businesses and homeowners.

Atom is here to change banking, creating a disruptive and digital bank, keeping costs low and passing back the value to its customers. The Atom app is at the heart of the bank, with a 24/7 support team on hand to help with any customer queries through phone, chat, email and social media, working out of their Durham HQ.

The Atom executive team are highly experienced, having built and run some of the most well respected banks in the UK. CEO Mark Mullen has 25 years’ experience in the sector and was previously CEO at the multi- award winning telephone and internet bank first direct. The team are supported by a strong non-exec board, which includes Chairman, Bridget Rosewell. Bridget has an economics background, is also Chairman of the Driver Vehicle Standards Agency and on the board of Network Rail as well as a Commissioner with the National Infrastructure Commission.

Since its creation in April 2014, Atom has:

  • Raised almost £400m of equity capital through the support of private and institutional investors, including BBVA, Woodford Investment Management and Toscafund Asset Management
  • Built a highly motivated and experienced team of around 300 permanent employees
  • Been ranked 8th in KPMG’s ‘Global 2017 Fintech 100’ listing, and uniquely in the EU have been top10 in this listing for the last three years.
  • Ranked 1st in Tech World’s Digital Challengers list
  • Ranked 14th in LinkedIn’s ‘Top 25 Startups’
  • Voted the UK’s most recommended bank
  • Industry leading NPS scores in relation to Savings Product and Savings App Journey of 73%
  • Trustpilot score of 5/5
  • 98% of customers said they would recommend us on Reevoo
  • Established a global network of partners and suppliers
  • Launched 1, 2, 3 and 5 Year market-leading Fixed Saver accounts - Atom has nearly £1.3bn in deposits so far
  • Launched Digital Mortgages by Atom bank, offering secured lending to SMEs and residential mortgage products - Atom has loaned around £1.2bn to date
  • will.i.am joined Atom bank as a Strategic Board Advisor, giving an external perspective on culture, community and technology
  • Partnered with Deposit Solutions and passported its deposit taking licence to Germany to access German retail savings market to diversify funding options and increase deposits
  • Announced a four year STEM partnership with the Prince’s Trust in North East England
  • Signed up to the Women in Finance Charter in 2016 and the Tech Talent Charter in 2017