Atom Bank has reduced rates across its near prime residential mortgage range by up to 0.20%.
As a result of the reductions, rates on two-year fixes for near prime customers begin at 5.69%, while three-year fixes start at 5.54% and five-year fixes begin from 5.34%.
Atom's near prime range is available up to 85% LTV and includes fee-free mortgage products, as well as those with an arrangement fee of £900.
Last year, Atom Bank made a series of improvements to its near prime criteria, designed to widen access to its products. These included more than doubling the maximum level of unsatisfied registered defaults from £1,000 to £2,500, with the level of unsatisfied registered defaults for communication and utility bills rising from £250 to £500. In addition, the ‘look back’ period for defaults was trimmed from three years to two years.
David Castling, 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.”
