Fed up spending hours and hours wading through paper to get a mortgage? Mobile-only bank Atom now lets you apply through an app.
There’s a catch though, while you can apply and monitor the progress of your application in the app, you will still be referred to a traditional mortgage broker to help you choose the mortgage that suits your needs best.
Once that’s done, you can log in to Atom’s app securely with face and voice biometrics and track your mortgage application progress every step of the way.
All updates and communication are done via the app and when a formal offer is made it can be accepted electronically with a tap of your finger
All updates and communication are done via the app and when a formal offer is made it can be accepted electronically with a tap of your finger.
The app also allows borrowers to keep and store all key documentation on their mobile automatically.
The digital bank is pitching itself at borrowers who perhaps can’t get a mortgage with a traditional bank – those who are self-employed, contractors, retired, looking for shared ownership or to buy a new-build property.
Rates for borrowers buying with a 40 per cent deposit start at 1.19 per cent, fixed for two years with a £900 product fee or 1.63 per cent with no fee. The five-year fixed rate at this loan-to-value is 1.89 per cent with a £900 fee or 2.08 per cent fee-free.
Borrowers with just 10 per cent equity or deposit can get a two-year fixed rate at 1.99 per cent with a £900 fee or 2.48 per cent fee-free. Five year fixed rates start at 2.89 per cent at 90 per cent LTV with a £900 fee or borrowers can opt for a 3.09 per cent five-year fix with no fee.
Atom is one of a host of new digital, online and mobile-only banks and financial services firms looking to appeal to customers who want to transact online.
It launched back in April, offering fixed term savings accounts and loans for SME businesses and it has revealed plans to offer buy-to-let mortgages in the coming months following today’s launch of its residential mortgage range.
Borrowers with just 10 per cent equity or deposit can get a two-year fixed rate at 1.99 per cent with a £900 fee
Atom’s chief executive Mark Mullen said: ‘Buying a home can be hugely exciting, but banks are playing with people’s dreams when they make the process so difficult. We want to change this – it should be a positive experience.
‘Old legacy processes that are institutionalised at the traditional banks simply don’t exist at Atom because we’ve built this bank from scratch. We can offer mortgages that are great value, and a service that is fast, informative and transparent. This is genuinely a revolution in mortgage lending.’
The mobile bank defended its decision not to let borrowers apply for an Atom mortgage directly from the lender, instead sending them to an independent adviser first.
Mullen said: ‘We strongly believe that offering mortgages via independent experts will give our customers the best service and the very best advice when choosing a mortgage. Our ultimate aim is to help people get what’s right for them, and for them to have the best experience along the way.’
Daniel Hegarty, who launched online mortgage broker Habito earlier this year, said: ‘We’re in the midst of a technological revolution across the entire financial services industry – application processes that used to take weeks are now taking minutes, and products that used to be opaque are becoming transparent and comprehensible to the consumer.
‘It’s taken the mortgage industry longer than most to come to the party, but it’s very exciting to see a new lender coming to market with a digital offering, and seeking to partner with intermediaries who can ensure that customers receive the best advice possible.’