Atom Bank has introduced a new fee tier to its near prime proposition.
The bank has added a £1,995 product fee range to its two-year fixed rate near prime products, with rates starting at 4.94% and LTVs up to 90%.
The addition of the new fee tier follows the introduction of the £1,500 fee tier in July.
The Bank has made a series of enhancements to its near prime range over the last 18 months, including increasing the maximum LTV to 90%, raising the acceptable levels of defaults and a succession of rate cuts.
Richard Harrison, head of mortgages at Atom Bank, commented: “Near prime is becoming an increasingly important option for brokers who are seeing more clients with some sort of historical credit blip. These credit issues are often one-offs, yet they can have a long-lasting impact on a borrower’s prospects. That’s why it’s so important for brokers to have a wide range of options to choose from.
“Adding the £1,995 fee tier allows us to provide products which will hold particular appeal for those who prioritise keeping the monthly repayments as low as possible, as well as those with larger loan amounts. There can be misconceptions about what near prime borrowers look like, but as our Near Prime Index highlighted, nearly a third of our cases involve households with incomes above £75,000, and so may be looking to raise bigger sums.
“The Near Prime Index made clear that this is an area of the market set to grow in the years ahead. Lenders need to be nimble in not only providing competitive products, but also ensuring their assessments are based on each borrower’s specific circumstances. Brokers have had enough of lenders’ ‘computer says no’ excuses for turning down applicants who are more than capable of repaying a mortgage.”
