Atom has cut rates on its near-prime deals by 10 basis points.

The latest reductions are on two and three-year fixed rates at up to 85% loan-to-value.

Following the changes two-year near-prime rates start from 5.39% and three-year rates from 5.24%.

Borrowers who take out near-prime products and improve their credit score will go on to automatically qualify for one of Atom’s prime rates when their initial deal matures.

Atom says that more than 70% of its near-prime borrowers go on to do so.

Earlier this year, the maximum LTV available on near-prime products was increased to 90%.

Today’s rate cuts follow several previous reductions to near-prime pricing.

Atom head of mortgages Richard Harrison says: “I am delighted to confirm another round of rate cuts on our near-prime range, which I know will be welcomed by brokers and their clients.

“We are determined to provide borrowers with great value, even if they have experienced a temporary payment blip in the past.

“We are really proud of the fact that the majority of our near-prime customers have qualified for a prime product at maturity in the last year.

“We continue to provide a clear path back to prime status for those borrowers who have suffered a temporary credit blip, ensuring that they get back on a sound financial footing when the time is right.”

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