Brokers have called for improved financial education, with the vast majority seeing an increase in near prime enquiries during 2025, a new study from Atom Bank has revealed.
Brokers were polled on their experiences during a recent webinar on the subject of near prime. More than nine in 10 (93%) brokers said they had seen an increase in customers with either adverse credit or who would fail traditional credit scores over the last year. It’s a trend they expect to continue, with around three quarters (74%) predicting a further jump in near prime business in 2026.
And they called for improved financial education in order to help the next generation of borrowers avoid succumbing to the same credit mistakes.
The government recently announced plans to include financial education within the national curriculum, and brokers were polled on what elements they felt were most important for inclusion. An overview of the different forms of credit was the most popular option, pinpointed 22% of respondents, while almost one in five called for lessons on the real cost of borrowing and how debt can build up over time.
The webinar discussion explored the increasing scale of the near prime market, with panellists noting that many customers experiencing credit blips are middle to high-income earners affected by life events or short-term financial pressures.
Data from Atom’s Near Prime Index revealed a significant proportion of these borrowers have household incomes of between £75,000 and £150,000, demonstrating that adverse credit is not confined to lower-income households.
Panellists - including Atom Bank's Richard Harrison, Jonny Magill from Haysto, and Nakita Moss, head of lender at Twenty7tec - also noted that customers often misunderstand the long-term impact of minor credit issues, and better financial education could prevent many from falling into avoidable difficulties.
In addition, technology was identified as a key enabler for brokers managing near prime cases. Panellists noted that integrating adverse credit data earlier in the research process leads to more accurate product sourcing, reduces adviser workload and supports clearer customer expectations.
Richard Harrison, head of mortgages at Atom Bank, said: “Near prime is now a mainstream part of the market, with our research highlighting the growing role it plays - and looks set to play - in the daily workloads of brokers across the country. What came through clearly in our webinar is that customers need more support and better financial education to help them understand borrowing, avoid unnecessary credit blips and navigate the mortgage process confidently.
“Demand for near prime lending is only likely to increase, as we see the continued ramifications of the budgeting challenges of recent years, so it’s crucial that lenders provide clear pathways back to prime products as customers’ circumstances improve. Atom Bank is committed to supporting these borrowers, combining flexibility, speed and criteria designed for the realities of today’s market.”
