Atom bank has cut rates across its near-prime mortgage range, with pricing now starting from 5.39% for borrowers at up to 60% loan-to-value.
The lender said the 20 basis point (bps) reductions apply immediately across all near-prime purchase and remortgage products, lowering costs for borrowers with less than perfect credit histories.
The move comes as lenders continue to adjust pricing in response to changing funding conditions, while brokers report growing demand from clients who fall outside the cleanest credit profiles.
Atom said its near-prime range had become an increasingly important part of its mortgage proposition. The bank has previously expanded the offering by increasing the maximum loan-to-value to 90% and adding new product fee tiers of £1,500 and £1,995 following broker feedback.
The lender has also sought to position itself more firmly in the specialist segment through its Near Prime Index, a twice-yearly report drawing on economic analysis, internal data and broker surveys. The second edition is due to be published shortly.
Atom pointed to research it carried out in November last year which found that 93% of brokers had seen demand for near-prime lending rise during 2025. Almost three quarters, or 74%, said they expected demand to grow further during this year.
That reflects a broader shift in the intermediary market, where brokers are dealing with more cases involving minor credit issues, historic blips or more complex borrowing backgrounds.
Richard Harrison, head of mortgages at Atom bank, said: “After a turbulent period for the mortgage market, we are pleased to be able to reduce rates across our Near Prime range.
“This reduction means we can deliver even better value to those looking to borrow with less than perfect credit, irrespective of whether it’s for purchase or refinance, or the size of their deposit.
“Near Prime is clearly growing in importance for brokers, with increasing numbers of clients coming to them with some sort of imperfection in their credit report.
“Atom bank will continue to look for new ways we can support these borrowers, making it easier and faster for all parties involved.”
