Record number of near prime applications reported

November 20, 2024 by Brendan O'Neill

Mortgage Advisors

Atom Bank is reporting that the number of near prime applications that it received during the third quarter of this year was the highest since it first launched the range.

Over the three-month period up to the close of October, the lender saw a 10% increase in applications for near prime mortgages, compared with the second quarter. When the total is compared to the number of applications for the third quarter of 2023, the increase is 47%. This represents a record number of applications for these products for Atom Bank.

The lender first introduced its near prime product range three years ago, but recently opted to adjust the lending criteria. It is likely that this was a contributory factor in the surge of public interest in the range.

Among the changes the made were the increase of unsatisfied registered default levels that borrowers could have and be eligible for one of the loans. The maximum that was permitted before was £1,000, but it has been raised to £2,000.

Unsatisfied registered default levels for utility and other bills were also raised. Previously, the lender accepted £250 as the maximum, but this now stands at £500. Atom Bank eliminated the charges for managing arrears and missed payments too. All of these changes to the criteria had the effect of making the near prime range accessible to a great number of people.

Any mortgage advisor with CeMAP training will be happy to see product ranges being opened up to more potential borrowers, as this benefits lenders too.