"We are determined to provide borrowers with great value, even if they have experienced a temporary payment blip in the past"
- Richard Harrison - Atom bank
Atom bank has announced that it has further reduced rates on its Near Prime residential mortgage range.
According to the lender, rates have been reduced by 0.10% on two- and three-year fixed-rate Near Prime products with a loan-to-value (LTV) ratio of up to 85%. The reductions take effect immediately.
Rates on two-year fixed-rate Near Prime products now start at 5.39%, while rates on three-year products begin at 5.24%. Pricing on the bank’s five-year fixed-rate Near Prime products remains unchanged, with rates starting at 5.14%.
Near-Prime customers who improve their credit position are rewarded with a Prime product at maturity, with over 70% of these customers qualifying for a Prime product within the past 12 months.
The maximum LTV available on Near Prime products was increased to 90% earlier this year following criteria enhancements in 2024, opening up the range to a broader number of borrowers who have experienced credit issues. These include more than doubling the acceptable level of unsatisfied defaults to £2,500 and reducing the ‘look back’ period for defaults from three years to two.
According to the bank, its Near Prime range has seen record levels of activity, with applications in April 2025 reaching a new high. This record level of activity comes off the back of the criteria improvements and rate cuts, which aim to make it easier for borrowers with less-than-perfect credit to access funding.
“I am delighted to confirm another round of rate cuts on our Near Prime range, which I know will be welcomed by brokers and their clients," said Atom bank's head of mortgages, Richard Harrison. "We are determined to provide borrowers with great value, even if they have experienced a temporary payment blip in the past.
He added, “Combined with our market-leading speeds and flexible criteria, Atom bank’s Near Prime proposition is striking a chord with brokers, ensuring we increasingly become a go-to option for borrowers with an imperfect credit history.
“We are really proud of the fact that the majority of our Near Prime customers have qualified for a Prime product at maturity in the last year. We continue to provide a clear path back to Prime status for those borrowers who have suffered a temporary credit blip, ensuring that they get back on a sound financial footing when the time is right.”
