Atom Bank reduces Near Prime rates again

May 2, 2025 by Alan

Rates

Atom Bank has announced another series of rate cuts to its residential ‘Near Prime’ range, which marks the third time that these have been reduced since the start of the year.

The maximum reduction that has been made to the rates is 0.35%. These cuts are set to be applicable across all of the five, three and two-year fixed Near Prime products. They will leave the starting rate for the fixed five-year loans at 5.24%, whereas for the fixed three-year product it is 5.44%. The fixed two-year Near Prime mortgage offered by Atom Bank now starts at 5.59%.

This move to further reduce Near Prime rates comes in the wake of cuts to the rates for its prime mortgage range last month. It is also being viewed as the lender’s reaction to swap rate changes in the market.

Talking to Financial Reporter, Richard Harrison, Atom Bank’s head of mortgages stated:

“The financial strain of recent years means brokers are seeing greater numbers of clients who have experienced a temporary payment issue, and so fall within the Near Prime category.”

He then went on to add that the bank was keen to ensure that customers in that position were still able to find products with rates that are amenable.

In addition to the Near Prime residential rate cuts, Atom Bank has also raised the maximum available LTV for those products to 90% now.

This will be seen as a positive step by most people with CeMAP mortgage advisor training, because it helps borrowers with complex finances.