Atom bank cuts Near Prime rates as adverse demand grows

Atom bank has reduced rates by 0.10% on Near Prime products available up to 85% loan-to-value, with the changes taking effect from today, 22 January.

Following the reduction, rates now start from 4.74% for eligible customers.

The bank said the move reflects continued strength in demand from borrowers with adverse credit, supported by research showing that 93% of brokers saw an increase in enquiries from this segment during 2025.

Around 74% of brokers surveyed expect interest from these clients to rise further during the year ahead.

IMPERFECT CREDIT HISTORIES

Atom bank has continued to develop its Near Prime proposition in recent years, expanding both choice and flexibility for borrowers who do not fit mainstream lending criteria.

Last year, the lender introduced two additional product fee tiers, set at £1,500 and £1,995, following broker feedback calling for greater flexibility for customers with larger loan sizes or those prioritising lower monthly repayments.

Alongside the introduction of new fee options, the bank increased the maximum loan-to-value on Near Prime products to 90% and has undertaken regular pricing reviews to maintain competitiveness for borrowers with less than perfect credit.

NEAR PRIME INDEX

The lender has also launched its Near Prime Index, designed to track conditions in the market for borrowers with adverse credit.

The first edition, published in November and covering the first half of 2025, highlighted broker frustration with lenders adopting a standardised approach to credit impairment, rather than assessing cases individually.

Richard Harrison, Atom bank — Richard Harrison, Atom Bank

Richard Harrison, head of mortgages at Atom bank, said: “Near Prime can no longer be viewed as a niche within the mortgage market.

“The challenges of recent years have resulted in temporary payment issues for some households, but with those troubles now behind them they need an understanding approach from mortgage lenders.

“We have looked to pass on rate cuts whenever we can, as we are determined to ensure brokers and their clients have access to a broad range of competitively priced Near Prime products.

“We will continue to identify ways in which our Near Prime proposition can be further enhanced across the year ahead as we continue to build our reputation for ease, speed and value in this space.”