Atom bank reduces rates across Near Prime range
19 February 2025
Atom bank, the UK’s highest rated bank on Trustpilot, has reduced rates across its Near Prime residential mortgage range.
The reductions take effect from today (19th February), and will allow Atom bank to deliver even better value to borrowers who may have suffered a temporary credit issue in the past.
Rates across the range have been cut by up to 0.20%, with Near Prime mortgages available at up to 85% loan-to-value.
As a result of the reductions, rates on two-year fixes for Near Prime customers begin at 5.69%, while three-year fixes start at 5.54% and five-year fixes begin from as low as 5.34%.
Atom bank’s Near Prime range includes fee-free mortgage products, as well as those with an arrangement fee of £900.
Delivering for Near Prime borrowers
The latest rate reduction is just the latest measure taken by Atom bank to support Near Prime customers with their borrowing needs.
Last year, Atom bank made a host of improvements to its Near Prime criteria, designed to widen access to its products. These included more than doubling the maximum level of unsatisfied registered defaults from £1,000 to £2,500, with the level of unsatisfied registered defaults for communication and utility bills rising from £250 to £500.
In addition, the ‘look back’ period for defaults was trimmed from three years to two years.
Record levels of applications
The digital lender saw record levels of activity following the improvements to its lending criteria.
In the three months to the end of October, Atom Bank received the largest levels of near prime applications, up 10% on the previous quarter, since the launch of the range in 2021.
On an annual basis, the level of near prime applications in October 2024 was almost double that of the same month in 2023.
David Castling, Head of Intermediary Distribution at Atom bank, said:
“We are certain that brokers and their clients will welcome these rate reductions. The cuts mean that Atom bank’s Near Prime range remains among the most competitive in the market in terms of price and flexibility, providing a greater range of affordable options to those who may have experienced a short-term credit blip.
“The challenges of recent years have resulted in more prospective borrowers falling into the Near Prime category, despite being fully capable of meeting repayments. We are passionate about supporting these borrowers on the path back to Prime, not only providing outstanding products for those with a less-than-perfect credit score, but also actively offering a Prime product to those borrowers when their circumstances improve sufficiently.”
