Atom bank starts New Year with Near Prime rate reduction

22 January 2026

Atom bank, the UK’s highest rated bank on Trustpilot, has announced a raft of rate cuts to its Near Prime mortgage range.

Rates on Near Prime products available up to 85% loan-to-value (LTV) have been cut by 0.10%, with the changes applying from today (22 January).

As a result of the reductions, rates on Near Prime products will now begin at 4.74% for eligible customers*.

The rate improvements follow research from Atom bank which revealed the vast majority (93%) of brokers had seen an increase in enquiries from clients with adverse credit in 2025, while around three quarters (74%) of those polled expect to see a further rise in interest this year.

Supporting borrowers with imperfect credit histories

Atom bank has repeatedly enhanced its Near Prime proposition in order to provide a wider range of competitive options for borrowers with imperfect credit histories.

Last year it introduced two new product fee tiers, available at £1,500 and £1,995, in response to feedback after brokers had called for broader choice for clients with large loans or whose main focus was on keeping monthly repayments as low as possible.

Alongside the new product fee tiers, Atom bank increased its maximum LTV on Near Prime products to 90% and consistently reviewed pricing to ensure products offer great value to borrowers with less than perfect credit.

The bank has also launched the Near Prime Index, a study of the state of the market for borrowers with some level of adverse credit. The first edition, released in November and looking at H1 2025, identified broker frustration at the attitude of lenders who take a standard approach to those with black marks on their report, rather than treating each case on its merits.

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

“Near Prime can no longer be viewed as a niche within the mortgage market. The challenges of recent years have resulted in temporary payment issues for some households, but with those troubles now behind them they need an understanding approach from mortgage lenders.

“We have looked to pass on rate cuts whenever we can, as we are determined to ensure brokers and their clients have access to a broad range of competitively priced Near Prime products. We will continue to identify ways in which our Near Prime proposition can be further enhanced across the year ahead as we continue to build our reputation for ease, speed and value in this space.”