Atom Bank has increased the maximum Loan-to-Value (LTV) available on its Near Prime range from 90% to 95%.
The bank says the expansion to smaller deposits is in direct response to feedback from brokers.
The 95% Near Prime range is designed to support borrowers with a mildly adverse credit history or thin files with products available to those who have had no defaults in the last 12 months, and no more than one in the last 36 months.
Other criteria include no CCJs in the last 36 months, and no more than one in the last 37 to 72 months, with a value of no more than £500 for dissatisfied CCJs.
There may also be no mortgage arrears in the past 12 months and there may not be more than two months of mortgage arrears in the past 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.
In addition to the launch, Atom Bank has also reduced rates on its existing Near Prime range, ranging from 60% to 90% LTV, by 0.10%, with rates now starting at 5.29%.
Atomic bank head of mortgages Richard Harrison says: “Brokers have been calling for more options for Near Prime borrowers with modest deposits, so I’m confident this launch will be well received. We have consistently listened and taken action to refine our Near Prime proposition so that it supports the types of cases brokers encounter every day.”
“Our Near Prime Index suggested that brokers are handling an increasing number of Near Prime cases and expect this to grow further, making it essential for lenders to provide practical solutions.”