Atom bank unveils second Near Prime rate cut in a month

26 June 2025

 - Atom bank reduces rates for the second time in June, having repeatedly cut rates throughout 2025 
- Majority of maturing Near Prime customers at Atom have qualified for a Prime product over the last year

Atom bank, the UK’s highest rated mortgage lender on Trustpilot, has again cut rates on its Near Prime residential mortgage range, the second reduction in June.

Rates have been cut by up to 0.20% across two, three and five-year fixed rates, with the largest reductions applying to products at the highest loan-to-values (LTV).

The lender’s Near Prime products are now available from just 5.04% on five-year fixed rates, while three-year fixes start at 5.19% and two-year fixes are priced from 5.24%.

Regaining Prime status

Atom bank stands out for its ability to support borrowers by making it easier to regain Prime status. 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.

This has been coupled with repeated rate cuts across the Near Prime range throughout 2025, delivering lower borrowing costs to those with an imperfect credit history. In addition, the move to increase the maximum LTV available to 90% has ensured Atom is able to support a wider group of borrowers.

As a result, Atom bank has reported record levels of activity on its Near Prime range in recent months.

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

“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. 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.

“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.”