Atom bank unveils Near Prime criteria improvements to help more borrowers

22 May 2024

• Level of acceptable unsatisfied registered defaults more than doubled to £2,500
• Defaults look back period reduced to two years
• Criteria changes supplement strong pricing on Near Prime range

Atom bank, the UK’s first app-based bank, has announced a series of significant improvements to its New Prime criteria to deliver greater support to an underserved area of the market.

Unsatisfied registered defaults are now accepted up to £2,500, up from the previous cap of £1,000. The limit for unsatisfied registered defaults for communication and utility bills has also doubled from £250 to £500.

Atom bank has also reduced the timeframe in which defaults will be taken into account. Previously defaults from more than three years ago were discounted, but now this will apply to defaults from more than two years ago.

Delivering better value and broader choice

The changes follow a number of recent improvements to ensure the Near Prime range is better value and more accessible.

Atom bank widened its Near Prime range with the addition of a suite of three-year fixed rate deals in April, and continues to offer strong value products to Near Prime borrowers.

Prior to this, Atom bank removed missed payment and arrears management fees to ensure that when clients experience payment issues they are supported in getting back onto their feet as quickly as possible.

Unlike many specialist lenders, Near Prime customers at Atom bank benefit from technology like Automated Valuation Models, providing them with a swift response to applications.

Richard Harrison, Head of Mortgages at Atom bank, commented:

“The range of improvements to our Near Prime range mean that Atom bank is now one of the leading lenders when it comes to delivering for clients who have a less than perfect credit history.

“We know that customers with the odd payment blip are significantly underserved by mainstream lenders at the moment, yet brokers are seeing greater numbers of clients who fall into this category after the challenges of recent years.

“Atom bank is determined to support Near Prime clients for the long term, not only taking a more understanding approach to their current situation, but also offering them the opportunity to move onto Prime products once their circumstances improve.”