Atom cuts near prime mortgage rates by 0.10%

Atom bank has cut rates across its Near Prime mortgage range by 0.10%.

The reductions apply across all products in the range, covering loan to value (LTV) tiers from 60% to 90%, including both fee charging and fee free options.

Following the changes, rates now start from 5.39% for a two year fixed rate at 60% LTV with a £1,995 fee.

The lender said it has continued to develop its Near Prime proposition in recent years, including increasing the maximum LTV available to 90% and introducing products with £1,500 and £1,995 fees.

Atom said research conducted during a recent broker webinar found that 81% of brokers had seen an increase in clients with adverse credit or those who had failed traditional credit scoring assessments over the previous 12 months. A further 89% expected demand from these borrowers to increase during the remainder of the year.

The lender plans to introduce further enhancements to support borrowers who fall outside mainstream lending criteria.

Richard Harrison, head of mortgages at Atom bank, said: "We are always looking for ways to improve our Near Prime proposition, so we are pleased to be able to introduce these rate reductions. These cuts apply across our full Near Prime range, irrespective of LTV or product fee tier, ensuring that all prospective borrowers benefit.

"Near Prime is taking on growing importance for brokers, representing a bigger proportion of their daily workload, which is why it’s important for lenders to embrace the sector."