Atom bank has increased the maximum loan-to-value (LTV) available on its Near Prime range to 90%.
By increasing the maximum LTV available on the range, the digital lender aims to open up access to finance for those who have a modest deposit and small blips on their credit record.
The Near Prime range includes 2-, 3- and 5-year fixed rates, with both fee-charging and fee-free options.
The Near Prime products available at 90% LTV start at 6.84% for 2-year fixed rates, and 6.69% for both 3- and 5-year fixed rates.
Richard Harrison, head of mortgages at Atom bank, said: “The record-breaking interest that we are seeing in our Near Prime range is a clear indication of our growing reputation among brokers for supporting this area of the market.
“Brokers are seeing more clients who have suffered a temporary payment problem as a result of the last few years, and while the issue may only have been short-term, the impact on their borrowing prospects threatens to be far longer lasting.”
He added: “With some of the fastest application to offer times in the market and a slick app based journey for customers, we want to deliver a better experience for Near Prime borrowers on a larger scale.
“This has driven a series of criteria enhancements over the last 12 months, such as the large increase in the level of acceptable defaults and the reduction in the ‘look back’ period for defaults.
“By raising our maximum LTV for Near Prime mortgages to 90%, we can support far more borrowers, many of whom could be first-time-buyers, to not only purchase their home but take the first steps towards regaining Prime status.”
