Atom bank has reported another record-breaking month for Near Prime activity.

Over the course of February, Atom bank received the largest value of Near Prime applications since the lender entered the Near Prime sector.

On an annual basis, the value of Near Prime applications in February was up by 70% on the same month in 2024, while the value of applications over the 12 months to February have risen by 62%.

The month eclipses the previous record value of Near Prime applications set back in October 2024.

Atom bank has twice reduced rates on its Near Prime range so far in 2025. It has also made a series of criteria improvements.

Last year, the digital lender more than doubled the allowable level of unsatisfied registered defaults a client may have, increasing it from £1,000 to £2,500. This included raising the allowable level of unsatisfied registered defaults for communication and utility bills from £250 to £500. In addition, the ‘look back’ period for defaults was reduced to two years from three years.

Meanwhile, Atom bank has broadened its Near Prime range through the addition of three-year fixed rate deals, while missed payment and arrears management fees have been removed. As a result, if borrowers experience repayment difficulties, they are supported in getting back on track rather than being further penalised.

Richard Harrison (pictured), head of mortgages at Atom bank, said: “Near Prime is an area of growing importance in the mortgage market. After the ups and downs of recent years, significant numbers of borrowers have gone through some temporary payment problems, which means they may be excluded by many high street lenders and forced to turn to specialist providers.

“We want to offer a digital, easy to use alternative that offers exceptional value, to ensure that we can support more borrowers in this position, and help them back on the path to Prime.

“Breaking our internal records for Near Prime lending repeatedly demonstrates that our proposition is making a difference, and that we are steadily becoming a go-to option for brokers with clients who have less than perfect credit scores.

“We have ambitious Near Prime plans and will continue to identify ways in which Atom bank can deliver for these borrowers on an even larger scale.”