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Challenger bank offers 5-year mortgages at 2-year rates

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Digital-only Atom Bank is offering customers a 5-year mortgage for the price of a 2-year deal.

From tomorrow, all new customers will be able to apply for a 5-year fixed term mortgage at the 2-year rate via one of the bank’s independent broker partners.

Rates start at 1.29% for a 60% loan-to-value (LTV) with a £900 fee, and 1.99% up to 90% LTV with a £900 fee.

The offer is available for a limited time only, subject to demand.

Atom’s director of retail mortgages, Maria Harris, said: “This move is entirely unprecedented; it’s important for us to make this available to customers now. We are in a position where we can help people improve their financial situation for the long term by reducing the amount they have to pay on their mortgage.”

Atom Bank launched into the mortgage space in December with a range of products, which can only be accessed via a broker for first-time buyers, the self-employed and customers borrowing into retirement. Customers are then able to track their application and accept an offer using the Atom app.

Andrew Montlake, director at Coreco Mortgage brokers, said: “Talk of disruption in the mortgage industry has taken many forms, with digital banks such as Atom being at the forefront of this.

“However, this latest move, offering 5-year fixed rate products at 2 year fixed process, has really turned the mortgage market on its head.

“A 5-year fixed rate available from just 1.29% at 60% loan-to-value and from 1.99% up to 90% LTV shows that product price disruption could be a real game changer, enabling consumers to really benefit from this new breed of lender and points to exciting times ahead in the mortgage world.”

Customers can take advantage of the offer by going to and clicking ‘download list of brokers’ to request a list of brokers who are able to discuss Atom Bank mortgages.

Full details of all rate decreases across all 5 year LTV bands:

  • 60% LTV with £900 fee: 1.29%
  • 60% LTV without fee: 1.64%
  • 75% LTV with £900 fee:1.34%
  • 75% LTV without fee: 1.74%
  • 80% LTV with £900 fee:1.49%
  • 80% LTV without fee: 1.89%
  • 85% LTV with £900 fee: 1.59%
  • 85% LTV without fee:1.99%
  • 90% LTV with £900 fee:1.99%
  • 90% LTV without fee: 2.44%

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