Atom Bank has reduced rates across its near prime mortgages by up to 0.2%.
The lender said the cuts would give better value to borrowers that have experienced credit blips in the past.
Atom Bank’s two-year fixed near prime rates now start at 5.69%, while three-year fixes begin at 5.54% and five-year fixes at 5.34%.
The near prime range is available up to 85% loan to value (LTV), includes fee-free options and has an arrangement fee of £900.
David Castling (pictured), head of intermediary distribution at Atom Bank, said: “We are certain that brokers and their clients will welcome these rate reductions. The cuts mean that Atom Bank’s near prime range remains among the most competitive in the market in terms of price and flexibility, providing a greater range of affordable options to those who may have experienced a short-term credit blip.
“The challenges of recent years have resulted in more prospective borrowers falling into the near prime category, despite being fully capable of meeting repayments. We are passionate about supporting these borrowers on the path back to Prime, not only providing outstanding products for those with a less-than-perfect credit score, but also actively offering a prime product to those borrowers when their circumstances improve sufficiently.”
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Last year, the lender improved its near prime criteria to increase the maximum level of unsatisfied registered defaults allowed from £1,000 to £2,500, and the level of unsatisfied registered defaults for communication and utility bills from £250 to £500.
Additionally, the ‘look back’ period for defaults was reduced from three to two years.
Atom Bank also reported a record level of applications for near prime options in the three months to October.
