Atom bank cuts Near Prime mortgage rates

23 May 2025

Atom bank, the UK’s highest rated residential mortgage lender on Trustpilot, has reduced rates on its Near Prime residential mortgage range with immediate effect.

Products available at between 60% and 85% LTV, for both purchase and remortgage cases, have been cut by 0.10%. For those looking to borrow at 90% LTV, the rates have been reduced by 0.15%.

The cuts apply to all of Atom bank’s two, three and five-year fixed rate Near Prime mortgage products.

As a result, rates start at 5.14% for five-year fixed rates, while three-year rates begin at 5.34% and two-year fixed rates are available from 5.49%.

Record-setting Near Prime activity

Atom bank has enjoyed record levels of interest in its Near Prime proposition this year.

In April 2025, the digital bank saw mortgage applications for Near Prime products set a new high, having risen substantially from March which itself had been a record month in its own right. Applications in April 2025 were nearly three times higher than in April 2024.

The record-breaking activity follows the raising of the maximum LTV available on the Near Prime range to 90%, ensuring that borrowers with smaller deposits benefit from the same access to Near Prime finance.

Other enhancements to Atom bank’s Near Prime criteria last year included reducing the ‘look back’ period for defaults from three years to two, and more than doubling the maximum level of unsatisfied registered defaults from £1,000 to £2,500.

Richard Harrison, Head of Mortgages at Atom bank, commented:

“We have seen market pricing fall over recent weeks and we are responding to this by reducing the rate to ensure we continue to offer great value products. The record-breaking activity we have seen over the last year shows how important Near Prime has become, and we will continue to improve our proposition wherever possible to ensure we become the go-to lender for brokers when their client has an imperfect credit record.”