Atom bank, the UK’s first app-only bank, has set new records for Near Prime lending.
The three months to the end of October saw the largest levels of applications on its Near Prime range. Over the quarter, applications were up by more than 10% on the previous quarter, and by 47% on the same three month period in 2023.
October was the most successful month to date since Atom bank launched the Near Prime range in 2021, surpassing the previous record set in July this year. On an annual basis, the level of Near Prime applications in October 2024 was almost double that of the same month in 2023.
Delivering for Near Prime borrowers
The record levels of Near Prime activity come after Atom bank made a host of improvements to its lending criteria earlier this year.
In May, the digital lender more than doubled the level of unsatisfied registered defaults which a client may have, from £1,000 to £2,500.
Alongside this, the level of unsatisfied registered defaults for communication and utility bills was increased from £250 to £500, while the ‘look back’ period for defaults was cut from three years to two.
Atom bank also widened its Near Prime range with the addition of a suite of three-year fixed rate deals, while removing missed payment and arrears management fees to ensure that when clients experience payment issues they are supported in getting back onto their feet as quickly as possible.
Unlike many specialist lenders, Near Prime customers at Atom bank also benefit from technology like Automated Valuation Models, providing them with a swift response to applications.
These changes mean that Atom bank is becoming more well known for its Near Prime offering and is better positioned than ever to support applicants who have experienced some level of payment issue in the past.
Richard Harrison, 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.
“We have made a host of significant improvements to our Near Prime criteria this year in order to better support these borrowers, who can be poorly served by mainstream lenders, and it’s clear that our range is striking a chord. We have seen a notable increase in interest over that time period, and we have achieved record levels of lending as more brokers become aware of our products.
“It’s vital that Near Prime borrowers are not unfairly penalised for past problems, and are supported not only through their home ownership journey but also on the path back to Prime status. We’ll continue to offer them a journey that is fast, easy and great value, and hope to see more brokers taking advantage of our offering.”
