Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Atom bank raises Near Prime maximum LTV to 95%

Atom bank has increased the maximum loan-to-value (LTV) available on its Near Prime mortgage range from 90% to 95%. The bank states this move is a direct response to broker feedback, aiming to support borrowers with smaller deposits.

The 95% LTV Near Prime range is designed for applicants with light adverse credit history or thin credit files. Eligibility criteria include no defaults in the last 12 months and no more than one default in the last 36 months. Applicants must also have no County Court Judgments (CCJs) in the last 36 months, and no more than one CCJ in the last 37 to 72 months, with a value of no more than £500 for unsatisfied CCJs. Additionally, there must be no mortgage arrears in the last 12 months, and no more than two months of mortgage arrears in the last 13 to 24 months.

Rates for the new 95% LTV Near Prime products start at 6.59% for a two-year fixed rate, with an arrangement fee of £1,995. Alongside this launch, Atom bank has reduced rates on its existing Near Prime range (spanning 60% to 90% LTV) by 0.10%, with rates now starting at 5.29%.

For letting agents and inventory clerks, these changes may impact the pool of potential tenants and buyers, particularly those with modest deposits or minor credit issues seeking to enter the property market.