Atom bank has announced a fresh round of rate reductions across its Near Prime residential mortgage range.
Effective immediately, the reductions will apply to both purchase and remortgage cases. Rates on products with loan-to-value ratios between 60% and 85% have been cut by 0.10%, while those borrowing at 90% LTV will benefit from a 0.15% cut.
The changes cover all of Atom’s two, three and five-year fixed rate Near Prime offerings.
Following the adjustments, five-year fixed rates now begin at 5.14%, while three-year products start at 5.34%. Two-year fixed rates are available from 5.49%.
The move comes as Atom bank says it continues to experience unprecedented growth in its Near Prime segment, with April 2025 setting a new monthly record for applications – almost triple the volume recorded in April 2024. This surge follows a previous high in March.
Last year, the lender implemented a series of enhancements to its Near Prime criteria, including lifting the maximum LTV to 90%, thereby widening access to borrowers with smaller deposits. Additional changes saw the ‘look back’ period for defaults shortened from three years to two, and the cap on unsatisfied registered defaults more than doubled, rising from £1,000 to £2,500.
Richard Harrison (pictured), head of mortgages at Atom bank, said the latest rate cuts were a direct response to easing market conditions.
“We have seen market pricing fall over recent weeks and we are responding to this by reducing the rate to ensure we continue to offer great value products. The record-breaking activity we have seen over the last year shows how important Near Prime has become, and we will continue to improve our proposition wherever possible to ensure we become the go-to lender for brokers when their client has an imperfect credit record.”
