Atom Bank has launched a range of new near prime products with a £1,500 arrangement fee, available for both purchase and remortgage purposes.
Borrowers can choose between two, three and five-year fixed rates, while the new products cater to those looking to borrow at 75%, 85% and 90% LTV.
Rates start at 5.24% for both three and five-year fixed rates, and 5.09% for the two-year fixed rates.
The launch of the new products complements Atom’s existing range of near prime mortgages, which includes options with a £900 arrangement fee or fee-free.
Near prime borrowers will be offered a prime rate automatically at maturity if they have sufficiently improved their credit position.
This feature has been available to the bulk of Atom Bank’s current near prime customers, with 70% of borrowers qualifying for a prime product at maturity over the past 12 months.
Richard Harrison, head of mortgages at Atom Bank, said: “This new range of products are sure to be welcomed by brokers and their near prime clients. The higher arrangement fee opens up lower interest rate options for customers, particularly those borrowing higher loan amounts. It’s another example of how Atom Bank is determined to provide greater choice to those who may have experienced a temporary credit blip in the past but want to raise finance for either a property purchase or remortgage.
“Our creative approach to product development and criteria has transformed Atom Bank’s standing in the near prime space, not only resulting in record levels of activity but helping us to become one of the first choice lenders for brokers whose clients aspire to regaining prime status.”
