Atom bank has increased the maximum loan-to-value (LTV) available on its Near Prime range to 90%.

The Near Prime range includes two, three and five-year fixed rates, with both fee-charging and fee-free options.

The Near Prime products available at 90% LTV start at 6.84% for two-year fixed rates, and 6.69% for both three and five-year fixed rates.

Last year, Atom bank made changes to the Near Prime criteria, including increasing the acceptable level of unsatisfied registered defaults from £1,000 to £2,500, raising the permissible level of unsatisfied registered defaults from £250 to £500 for communication and utility bills, while the ‘look back’ period for defaults was cut from three years to two years.

In addition, Atom bank has widened the reach of the Near Prime range through the addition of products with a three-year fixed rate period, and has removed missed payment and arrears management fees.

In addition, rates on the Near Prime range have been reduced twice already in 2025.

ACTIVITY

In February, Atom bank received the largest value of Near Prime applications since entering the sector, with applications up 70% compared to February 2024. This reflects a clear trend of increased activity, with the value of applications over the 12 months to February increasing by 62%, the bank said.

Richard Harrison, head of mortgages at Atom bank, said: “The record-breaking interest that we are seeing in our Near Prime range is a clear indication of our growing reputation among brokers for supporting this area of the market.

“Brokers are seeing more clients who have suffered a temporary payment problem as a result of the last few years, and while the issue may only have been short-term, the impact on their borrowing prospects threatens to be far longer lasting.

“With some of the fastest application to offer times in the market and a slick app based journey for customers, we want to deliver a better experience for Near Prime borrowers on a larger scale. This has driven a series of criteria enhancements over the last 12 months, such as the large increase in the level of acceptable defaults and the reduction in the ‘look back’ period for defaults.

“By raising our maximum LTV for Near Prime mortgages to 90%, we can support far more borrowers, many of whom could be first-time-buyers, to not only purchase their home but take the first steps towards regaining Prime status.”