Digital-only lender, Atom Bank, has launched the UK’s first app-based mortgages, available via independent mortgage advisors. The lender is offering a range of products for first-time buyers, the self-employed, shared ownership, and new builds, with plans to move into the buy-to-let market next year.
The app will facilitate a quick and easy application process by allowing borrowers to track their application, store important documentation and receive notifications on the app. One hurdle is that customers must find an intermediary through the customer support team, although there are plans to manage this via the app in the future.
The Atom Bank launch comes at the same time the Financial Conduct Authority (FCA) announced that it will review mortgage market competition, with some hoping that new challenger banks will help boost competition in retail banking.
Current RFi Group data shows that only 3% of buyers are considering using an app to apply for their mortgage, with most preferring apply face-to- face or online. However, as more digital-only banks enter the market, consumer preferences may change if mobile banking can deliver a simple and effective application process.