Digital challenger Atom Bank starts mortgage lending – Telegraph.co.uk
Digital-only challenger bank Atom has started to offer residential mortgages, in the latest attempt by Britainâs first smartphone-based lender to take on the high street banking giants.
Atom, which is backed by investors including famous fund manager Neil Woodford and Spanish bank BBVA, has launched a range of loan products through independent mortgage advisers, including for self-employed borrowers, first-time buyers, new-builds and shared ownership. It also plans to start offering buy-to-let mortgages soon.
By pushing into the mortgage market, Atom is opening another front against the Big Five banks – Barclays, HSBC, Lloyds, Royal Bank of Scotland and Santander UK – that currently dominate the industry. It is one of a host of so-called challenger banks, which include Virgin Money and Clydesdale, that are trying to take customers from big high street rivals.
The app-based lender launched in April with a savings account offering, having secured its banking licence last year. Mark Mullen, Atomâs chief executive, said established banks were âplaying with peopleâs dreamsâ by making the home-buying process âso difficultâ and that the challenger would make securing a mortgage much quicker and easier.
âOld legacy processes that are institutionalised at the traditional banks simply donât exist at Atom because weâve built this bank from scratch,â he said. âWe can offer mortgages that are great value, and a service that is fast, informative and transparent.â
Maria Harris, Atomâs director of retail mortgages, said that âin some cases mortgage offers can be made on the same dayâ.
The challenger bankÂ has already partnered with 868 mortgage brokers and plans to add to its roster of advisers.Â