Atom bank has made further adjustments to its residential mortgage offering, lowering rates across both its Prime and Near Prime ranges.
The move brings starting rates down to 4.69% for Prime products and 4.84% for Near Prime, extending a period of active repricing at the digital lender.
REDUCTIONS FOLLOW NEW FEE STRUCTURE
The changes arrive a week after Atom introduced a new £1,995 fee tier for its Near Prime range, complementing an existing £1,500 option launched earlier this year. The two tiers are designed to give borrowers more flexibility on price point, with early signs showing interest from both those seeking to minimise monthly repayments and those taking larger loans.
Atom has spent much of 2025 refining its Prime and Near Prime propositions. Enhancements have included increasing maximum loan to value on Near Prime to 90%, alongside a run of earlier rate cuts as demand in the segment has grown.
NEAR PRIME DEMAND AT RECORD LEVELS
The bank has reported repeated spikes in Near Prime activity this year, reflecting shifting borrower profiles as more applicants present with minor credit issues. Earlier in the year Atom published the first edition of its Near Prime Index, a twice-yearly assessment combining broker feedback, the bank’s own data and wider economic analysis.
The H1 study underscored the need for greater lender flexibility for customers with small historic credit blips.
Richard Harrison, head of mortgages at Atom bank, said: “We have shown throughout the year that we are determined to reduce rates whenever possible.
“We are passing on a recent fall in swap rates by cutting rates across both our Prime and Near Prime ranges to support borrowers, including growing numbers of those with a minor blip on their credit history.”
He added: “Our record-breaking levels of Near Prime activity highlight just how important this sector has become for brokers.
“They are seeing a much higher proportion of clients who have gone through a temporary credit issue and so need an understanding approach from a mortgage lender.”
Harrison said the mix of flexible criteria, higher LTVs and competitive pricing had become a hallmark of Atom’s proposition, adding that he expects further increases in Near Prime lending volumes into 2026.
