Digital lender launches UK's first 'mobile' mortgage

Posted 29 December 2016

Atom, a new UK bank, has launched a new mortgage range that allows users to apply for a mortgage digitally through a smartphone app

One of the UK's new 'challenger banks' has become the first to launch a mortgage that you can apply for via an app. Atom Bank has put the entire mortgage application process in a smartphone app, starting what some have called a 'technological revolution' in the industry.

Atom Bank launched in April 2016, offering fixed term savings accounts and loans for small and medium sized businesses. Now, it has launched a residential mortgage range that allows you to apply via an app.

While you can apply and follow the progress of your mortgage application through the app, you will still be referred to a traditional mortgage broker to help you find the most suitable mortgage for you. Once that is done, you can log into the Atom Bank app using face and voice recognition, allowing you to track your mortgage application from your phone.

All updates and communication come via the app and you can accept your mortgage offer electronically.

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 digital-only bank is aiming its services at borrowers who are struggling with a traditional bank, for example contractors, retired people,  the self employed and those looking for shared ownership or to buy a new-build property.

Atom has also announced plans to offer buy-to-let mortgages in the coming months.

If you want to borrow up to 60% loan to value, you can fix your mortgage for two years at 1.19% or for five years at 1.89%. Both deals have a £900 product fee.

If you have a 10% deposit you can benefit from a two year fixed rate at just 1.99% or a five year fix at 2.89%. Both deals have a £900 product fee.

The start of a 'technological revolution' in financial services

The bank has defended its decision not to allow borrowers to apply for an Atom Bank mortgage directly, instead referring them to an independent advisor.

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."

Mortgage experts believe that this is the first step towards a 'revolution' in the way lenders use technology.

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."



 

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