Atom Bank’s Q3 near prime mortgage applications have increased by 47% compared to the same period last year.
In the three months to the end of October, Atom Bank received the largest levels of near prime applications, up 10% on the previous quarter, since the launch of the range in 2021.
On an annual basis, the level of near prime applications in October 2024 was almost double that of the same month in 2023.
The record levels of activity come after Atom Bank made improvements to its lending criteria earlier this year.
The digital lender has more than doubled the level of unsatisfied registered defaults that a client may have, from £1,000 to £2,500.
Meanwhile, the level of unsatisfied registered defaults for communication and utility bills was increased from £250 to £500.
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Missed payment and arrears management fees were also removed.
Richard Harrison (pictured), head of mortgages at Atom Bank, said: “The challenges of recent years have inevitably meant that some prospective purchasers have a less-than-perfect credit record. However, it’s not fair that what may have been a temporary, historical issue continues to hamper their borrowing prospects in the present.
“It’s vital that near prime borrowers are not unfairly penalised for past problems, and are supported not only through their homeownership journey but also on the path back to prime status.”
According to UK Finance’s latest figures, homeowners and buy-to-let (BTL) landlords with mortgage arrears fell in number in the three months to September, while repossessions remained lower than the long-term average.
