Brokers are reporting rising demand for near prime mortgages, with Atom bank polling suggesting expectations for further growth have strengthened since the end of last year.

A poll carried out during an Atom bank webinar found that 81% of brokers had seen an increase in clients with adverse credit or those who had failed traditional credit scores over the past 12 months.

That was lower than the 93% recorded in a similar Atom bank near prime webinar in December, but expectations for further demand have increased.

According to the bank, 89% of brokers said they expected to advise more clients on near prime products during 2026, compared with 74% in the previous webinar poll.

The webinar followed the publication of the second edition of Atom bank’s Near Prime Index report, which looked at the challenges facing borrowers who fall outside prime lending criteria, including first-time buyers and those with thin credit files.

The index found that first-time buyers account for an increasing proportion of brokers’ near prime clients, while Atom bank said its own customer data suggested most of its near prime customers were taking their first step onto the housing ladder.

Brokers also identified deposit size as the biggest barrier to submitting applications for near prime first-time buyer clients, with the report including calls for more high-LTV options.

During the webinar, brokers were also asked which areas should be prioritised in financial education from a mortgage and lending perspective, following government plans to include financial education in the school curriculum.

The real cost of borrowing and how debt can build up was the most popular answer, chosen by 21% of respondents, followed by how to avoid problem debt and credit scores and credit reports, both selected by 14%.

The webinar panel included Richard Harrison, head of mortgages at Atom bank, David Hollingworth, associate director at L&C Mortgages, and Rachel Geddes, strategic lender relationship director at MAB. It was chaired by Paul Hunt, co-founder of Square 1 Media.

Harrison said: “After the increases in Near Prime demand reported by brokers last year, the belief is there will be further growth to come. That demand comes from both those making their first step onto the housing ladder, and existing homeowners coming off fixed-rate deals and facing the prospect of much higher rates than anticipated as a result of the situation in the Middle East.

“With cost of living challenges continuing to feed through into borrower prospects, pushing more aspiring buyers outside of Prime criteria, it’s crucial that the industry takes the time to better understand these borrowers and what they need in order to meet their homebuying dreams.”

Hollingworth added: “We know that brokers are already seeing increasing numbers of customers who can fall outside of mainstream Prime criteria, whether because of payment issues in the past or a sparse credit file.

“With another surge in the cost of living expected it’s crucial for lenders to recognise this trend, and ensure Near Prime borrowers have access to funding, particularly first-time buyers.

“Saving for a deposit remains such a challenge that there’s real benefit in combining a more understanding approach to assessing creditworthiness with a broader range of higher LTV options.”