"We have shown throughout the year that we are determined to reduce rates whenever possible"
- Richard Harrison - Atom bank
Atom bank has announced that it has lowered rates across its residential mortgages, applying cuts of up to 0.15% on both Prime and Near Prime products. The new pricing takes effect immediately, with Prime starting at 4.69% and Near Prime beginning at 4.84%.
The announcement follows last week’s introduction of a £1,995 fee tier within the Near Prime range. The tier builds on the £1,500 option launched earlier in the year, providing borrowers with more price points to choose from. According to the bank, the fee options appeal to customers seeking lower repayments and to those borrowing larger sums.
Atom has continued to develop its Prime and Near Prime offer throughout 2025 to widen choice for brokers and their clients. The business has aimed to align pricing with different borrower profiles, and these developments have been accompanied by several product adjustments. For example, the maximum LTV for Near Prime products increased to 90%, supported by repeated reductions to pricing across the range.
Near Prime has been a particular focus, with the bank recording multiple internal activity highs. The lender has also released its first Near Prime Index, a twice-yearly study combining broker feedback, internal data, and external economic analysis. The inaugural edition for H1 2025 found that more adaptable lending approaches are needed to support borrowers who have experienced isolated credit issues.
Discussing the latest reductions, Richard Harrison, head of mortgages at Atom bank, explained, “We have shown throughout the year that we are determined to reduce rates whenever possible. We are passing on a recent fall in swap rates by cutting rates across both our Prime and Near Prime ranges to support borrowers, including growing numbers of those with a minor blip on their credit history."
“Our record-breaking levels of Near Prime activity highlight just how important this sector has become for brokers. They are seeing a much higher proportion of clients who have gone through a temporary credit issue and so need an understanding approach from a mortgage lender."
"The combination of flexible criteria, high LTVs, and competitive pricing is what Atom bank has become known for, which is why I’m confident we will set yet more records for Near Prime lending in 2026 and beyond.”
