Atom bank has announced further reductions across its Near Prime residential mortgage range, with fixed rates cut by up to 35 basis points (bps).
The move comes as the self-styled digital lender continues to respond to shifts in swap rates and bolster its offering for borrowers underserved by high street lenders.
The rate cuts, which came into effect immediately, apply to all two, three and five-year fixed Near Prime products. Following the reductions, Atom’s five-year fixes now start from 5.24%, three-year deals from 5.44%, and two-year options from 5.59%.
This is the third time in 2025 that the bank has reduced rates on its Near Prime range. It follows closely behind cuts to its Prime products earlier in April.
Recent enhancements to the product criteria have included an increase in the maximum loan-to-value (LTV) ratio to 90%, aimed at supporting clients with smaller deposits. Criteria changes made last year have also played a role in widening eligibility, such as raising the threshold for unsatisfied registered defaults from £1,000 to £2,500 and shortening the default ‘look back’ period from three years to two.
BUSINESS BOOST
Atom says these steps have helped drive record levels of activity. In February, the lender reported its highest ever monthly value of Near Prime mortgage applications since entering the sector, surpassing a previous high set in October 2024. Compared to the same month last year, application volumes were up by 70%.
Richard Harrison, head of mortgages at Atom bank, said: “The financial strain of recent years means brokers are seeing greater numbers of clients who have experienced a temporary payment issue, and so fall within the Near Prime category. We are committed to providing these borrowers, including those with more modest deposits, with access to highly competitive mortgage products, which is why we move quickly to reduce rates whenever possible.”
He added that the combination of consistent pricing cuts, improved criteria and a swift application process was enabling the bank to scale its Near Prime proposition significantly. “We have repeatedly broken internal records for Near Prime lending over the last 12 months, and have big ambitions for becoming the first choice lender for brokers when their client has a less than spotless credit record,” Harrison said.
