Atom bank has experienced a remarkable increase in Near Prime applications during Q3, with figures exceeding expectations.
- The bank reported a 10% rise in applications compared to the previous quarter, marking significant growth.
- October was notably the most successful month since the introduction of Atom’s Near Prime range.
- Looking back at the same period last year, applications have surged by 47%.
- Changes in criteria have contributed to making borrowing more accessible for those with past credit issues.
In the third quarter, Atom bank witnessed a noteworthy 10% increase in applications for its Near Prime mortgage range when compared to the previous quarter. This indicates a steady upward trend in the bank’s lending activities. October emerged as a record-breaking month, setting new benchmarks for success since the Near Prime range was launched in 2021. This shows Atom Bank’s expanding presence and growing acceptance among borrowers.
Looking back at the figures from the same period in 2023, applications have leapt by an impressive 47%. This substantial year-on-year growth signals strong market demand and an enhanced awareness of Atom’s offerings among potential borrowers. Although initial expectations were high, the bank’s performance has evidently outpaced them, leading to unprecedented success.
The decision to relax criteria has been pivotal in driving these increases. By more than doubling the permitted level of unsatisfied registered defaults from £1,000 to £2,500, Atom Bank has opened the door wider for those with imperfect credit histories. Additionally, the threshold for unsatisfied registered defaults on communication and utility bills was increased from £250 to £500. Another significant policy change was reducing the ‘look back’ period for defaults from three years to two. These adjustments have made it easier for borrowers to access financial products that were previously out of reach.
Richard Harrison, head of mortgages at Atom bank, remarked, “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.” His comments highlight the bank’s commitment to adapting its services to better serve customers who may be overlooked by traditional lenders.
Moreover, Atom bank has expanded its Near Prime range with new three-year fixed-rate deals, along with removing missed payment and arrears management fees. This move not only offers greater flexibility to borrowers but also enhances the attractiveness of their products. The goal is to support Near Prime borrowers in both acquiring property and progressing towards Prime status. This comprehensive approach has resulted in record levels of lending, as more brokers become aware of these advanced offerings.
Atom bank’s strategic enhancements to its Near Prime range have evidently resonated with borrowers, leading to an unprecedented surge in applications.
