Atom bank has announced its second reduction in near prime mortgage rates this month.

The bank has lowered rates by as much as 0.20% across its two, three and five-year fixed rate near prime products.

The most significant cuts have been applied to products at higher loan-to-value ratios, with five-year fixed rates now starting from 5.04%, three-year fixes from 5.19%, and two-year options beginning at 5.24%.

This latest move follows a series of reductions across Atom’s near prime range throughout 2025. A key element of Atom’s proposition has been its approach to borrower progression. Customers who enter on a near prime product and subsequently improve their credit profile are automatically offered a Prime rate when their deal matures — a policy that appears to be yielding results.

According to the bank, over 70% of its near prime customers have moved on to a Prime product at the end of their initial term over the past year, suggesting that a significant majority are managing to repair their credit sufficiently to qualify for improved terms.

Atom has also taken steps to widen access to its near prime offering by increasing the maximum loan-to-value to 90%, allowing more borrowers with limited deposits or equity to take advantage of its products.

Richard Harrison, head of mortgages at Atom bank, said the dual rate cut in June underlined the lender’s commitment to this segment of the market.

“A second round of rate cuts on our near prime range in the month of June demonstrates our determination to provide these borrowers with great value,” he said.

“Atom bank will act whenever possible to improve our proposition, from reducing rates to offering greater flexibility. This is a sector where we have ambitions to become the go-to lender for brokers and their clients,” he added.

Harrison also pointed to the high proportion of near prime customers graduating to Prime rates as evidence of the lender’s supportive stance.

“It’s a huge positive to see that such a large proportion of our near prime borrowers are qualifying for a Prime product at maturity and are automatically offered an improved rate,” he said.

“This highlights the value of working with lenders who support customers not just after a credit blip, but also as their credit status improves.”