Rates across the range have been cut by up to 0.20 percentage points, with near prime mortgages available at up to 85% of the property’s value.
As a result of the reductions, rates on two-year fixes for near prime customers now start from 5.69%, while three-year fixes start at 5.54% and five-year fixes from 5.34%.
The range includes fee-free mortgage products, as well as those with an arrangement fee of £900.
Record levels of applications
The digital lender said saw record levels of activity following changes to its lending criteria last year.
In the three months to the end of October, Atom Bank received increased levels of near prime applications, up 10% on the previous quarter, since the launch of the range in 2021.
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On an annual basis, the level of near prime applications in October 2024 was almost double that of the same month in 2023.
David Castling, head of intermediary distribution at Atom bank, said: “We are certain that brokers and their clients will welcome these rate reductions. The cuts mean that Atom bank’s ‘near prime’ range remains among the most competitive in the market in terms of price and flexibility, providing a greater range of affordable options to those who may have experienced a short-term credit blip.
“The challenges of recent years have resulted in more prospective borrowers falling into the near prime category, despite being fully capable of meeting repayments.
“We are passionate about supporting these borrowers on the path back to prime, not only providing outstanding products for those with a less-than-perfect credit score, but also actively offering a Prime product to those borrowers when their circumstances improve sufficiently.”
