Atom announces further cuts to near prime mortgage rates

Atom Bank has reduced rates on its near prime residential mortgage range by up to 0.35%.

This is the third time the bank has dropped rates on its near prime products so far in 2025, and follows a reduction to Atom Bank’s prime range earlier in April.

The round of cuts come in response to recent swap rate movements and apply to all of Atom’s two, three and five-year fixed rate near prime mortgage products. 

As a result of the cuts, rates for five-year fixed rate near prime products start at 5.24%, while three-year rates start at 5.44% and two-year rates from 5.59%.

The bank recently increased the maximum LTV available on its near prime range to 90%. The LTV increase followed a series of criteria improvements introduced last year, such as more than doubling the maximum level of unsatisfied registered defaults from £1,000 to £2,500, while the ‘look back’ period for defaults was cut from three years to two.

Richard Harrison, head of mortgages at Atom Bank, commented: “The financial strain of recent years means brokers are seeing greater numbers of clients who have experienced a temporary payment issue, and so fall within the near prime category. We are committed to providing these borrowers, including those with more modest deposits, with access to highly competitive mortgage products, which is why we move quickly to reduce rates whenever possible.

“We have repeatedly broken internal records for near prime lending over the last 12 months, and have big ambitions for becoming the first choice lender for brokers when their client has a less than spotless credit record. The combination of consistent cuts, criteria enhancements and our market-leading speed of service are helping us to scale up our near prime lending to support even more borrowers in the future.”