Atom Bank has reduced rates on its near prime residential mortgage range, the latest of several reductions across the range this year.
Rates have been reduced by 0.10% on two and three-year fixed rate near prime products up to 85% LTV.
As a result of the latest round of reductions, rates on two-year fixed rate near prime products start at 5.39%, while rates on three-year products begin at 5.24%. Pricing on Atom Bank’s five-year fixed rate near prime products is unchanged, with products starting at 5.14%.
Atom automatically rewards near prime customers who improve their credit position with a prime product at maturity and more than 70% of these customers have qualified for a prime product over the past 12 months.
The maximum LTV available on near prime products was increased to 90% earlier this year, and followed a range of enhancements to criteria in 2024 which has opened 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.
Atom Bank has reported seeing record levels of activity on its near prime range, with applications in April 2025 setting a new high.
Richard Harrison, head of mortgages at Atom Bank, said: “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. We are determined to provide borrowers with great value, even if they have experienced a temporary payment blip in the past.
“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.”
