Atom bank has reduced its prime and near prime mortgage rates by up to 0.55%.

The rate changes across the prime 85%, 90% and 95% loan-to-value (LTV) bands see reductions across both two and 5-year products of 0.45%, 0.40% and 0.30% respectively.

On near prime products a revised LTV structure is introduced, with Atom now offering rates at 65% and 75% LTV.

Its 2-year fixed 75% LTV rates are reduced by up to 0.55% whilst its 5-year fixed 75% LTV rates reduced by up to 0.50%

Paula Mercer, head of intermediary lending at Atom bank said: “Atom understands the needs of customers and appreciates that the pandemic has impacted the majority of people’s finances. The initial uncertainty of lockdowns may have caused customers to default or miss loan payments.

“Where mainstream banks and traditional lenders may deny mortgage applications due to indiscretions made over a year ago, our Near Prime package was curated to meet the needs of these customers.

“Despite being new to the Near Prime market, we believe it offers a service that is unparalleled – through our digital offering, speed of service and relevant criteria. We look to bring an efficient, streamlined approach that sets us apart from our competitors.”

Danny Belton, Head of Lender Relationships at Legal & General, said: “There is no doubt that product pricing has become extremely competitive in recent months, with a variety of lenders unveiling rate reductions.

“For customers, this has meant the growing availability of historically affordable mortgage options and it’s excellent to see Atom bank also choosing to pass on rate savings to borrowers.

“Atom’s latest round of rate changes will provide meaningful product options to our adviser community, helping them to pair their Prime and Near Prime borrowers that are interested in a digital-first service with favourably priced mortgages.”