Atom bank reduces rates on Near Prime and 95% LTV Prime products by up to 0.25%

12 September 2024

• Near Prime products see rates cut by up to 0.25%
• Prime products at 95% LTV reduced by up to 0.15% to help FTBs and those with smaller deposits
• Reductions come following key criteria changes earlier in the year

Atom bank, the UK’s first app-only bank, has announced a raft of rate cuts across both Near Prime and Prime product ranges.

Rates on Atom bank’s Near Prime range of products are being cut by up to 0.25% to further help those borrowers with less than perfect credit.

Prime products available at 95% loan-to-value (LTV) will see their rates reduced by up to 0.15%, providing further support to those with only modest deposits looking to purchase or refinance their home.

The rate reductions, which take effect from Thursday 12th September, come after Atom bank launched a new broker website and rebrand, steps aimed at making it easier than ever for intermediaries to work with the digital lender.

Doing more for Near Prime borrowers

The latest rate reductions are just the latest stage in Atom bank’s mission to support underserved segments of the mortgage market. Atom bank has repeatedly taken action to support Near Prime borrowers, who may have suffered the odd payment issue in the past.

Earlier this year Atom bank broadened its Near Prime criteria, increasing the acceptable level of unsatisfied, unregistered defaults from £1,000 to £2,500, alongside reducing the timeframe in which defaults are taken into account from three years to two.

Delivering on small deposits

As well as helping borrowers with black marks on their credit history, Atom bank is also targeting those with small deposits or who are struggling to achieve the sums needed for a purchase.

In August, Atom bank made a series of revisions to its lending criteria to better deliver for these borrowers, including increasing the maximum loan-to-income (LTI) achievable on loans of up to 90% LTV to six times income, for applicants with incomes of £75,000 or over. For those looking to borrow at 95% LTV, Atom bank will lend up to 5.5 times the applicant’s income if they have an income of £75,000 or over.

As well as the LTI increases, Atom also increased the maximum LTV available on properties in London and the South East. As a result, for both existing flats and new-build houses, the maximum LTV has risen from 90% to 95%, while for new-build flats the maximum LTV has increased from 80% to 90%.
Richard Harrison, Head of Mortgages at Atom bank, commented:
“Atom bank is passionate about going further in supporting borrowers who may have been poorly served traditionally. These rate cuts mean Near Prime borrowers and Prime borrowers with small deposits have even more competitive products from which to choose and can benefit from the speedy service we are building a reputation for.

“We’re delighted that more brokers are now realising how competitive our Near Prime product is, and we are slowly becoming known as a go to for any clients who may have had some credit issues in the past and have been turned down by other mainstream lenders.

“We are committed to working closely with intermediaries to make the changes to our products and processes which mean we are easy to work with and continue to deliver for borrowers who want to make home ownership a reality.”