Brokers predict further growth in near prime demand

A new broker poll by Atom Bank has revealed brokers are seeing an increase in demand for near prime products, with further growth expected.

Brokers were polled on their experiences and opinions of near prime during a recent webinar, following the second edition of Atom's Near Prime Index report.

Of those in attendance, 81% of brokers reported seeing an increase in clients with adverse credit or who have failed traditional credit scores over the last 12 months. However, this was down from 93% of brokers who were polled in December.

Conversely, the belief that near prime demand will grow in the months ahead has strengthened, with 89% of brokers stating they expect to advise more clients on near prime products over the course of 2026, compared with 74% of brokers in the last webinar poll.

The latest Near Prime Index for H2 2025 found that first-time buyers account for an increasing proportion of brokers’ near prime clients, while Atom’s own customer data suggests the majority of its near prime customers are those taking their first step onto the housing ladder.

Richard Harrison, head of mortgages at Atom Bank, 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.” 

David Hollingworth, associate director at L&C Mortgages, 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.”