Atom bank cuts Near Prime rates for second time in June

Atom bank has reduced rates across its Near Prime residential mortgage range for the second time this month, continuing a pattern of pricing adjustments throughout 2025.

The latest changes include rate reductions of up to 0.20% on two, three, and five-year fixed products. The largest cuts apply to loans at higher loan-to-value (LTV) tiers. Following the revision, five-year fixes now start from 5.04%, with three-year fixes beginning at 5.19% and two-year products from 5.24%.

The Near Prime range, designed for borrowers with a less-than-perfect credit history, has been a key area of focus for the lender. Atom bank’s ongoing rate cuts this year have been paired with a move to increase the maximum available LTV to 90%, broadening access for more customers.

Near Prime borrowers who sufficiently improve their credit status during the term of their fixed rate will be offered a Prime product automatically at maturity. The majority of Near Prime borrowers are doing just that, with more than 70% of Near Prime borrowers qualifying for a Prime product over the past 12 months.

According to Atom, this approach has supported a significant rise in borrower demand, with activity in its Near Prime range in recent months, driven by both rate competitiveness and flexibility in customer progression.

“A second round of rate cuts on our Near Prime range in the month of June demonstrates our determination to provide these borrowers with great value,” said Richard Harrison, head of mortgages at Atom bank (pictured). “Atom bank will act whenever possible to improve our proposition, from reducing rates to offering greater flexibility. This is a sector where we have ambitions to become the go-to lender for brokers and their clients.

He added, “It’s a huge positive to see that such a large proportion of our Near Prime borrowers are qualifying for a Prime product at maturity and are automatically offered an improved rate. This highlights the value of working with lenders who support customers not just after a credit blip, but also as their credit status improves.”