Atom bank has set new records for near prime lending, with the three months to the end of October witnessing the largest levels of applications on the app-only bank’s near prime range.

Aapplications were up by more than 10% on the previous quarter, while also increasing by 47% on the same period a year previously.

October was also the most successful month to date since Atom launched the near prime range on 2021, surpassing the record set in July 2023.

On an annual basis, the level of near prime applications in October 2024 was almost double that of the same month in 2023.

The record levels of near prime activity come after Atom made a number of improvements to its lending criteria earlier this year.

In May, the bank more than doubled the level of unsatisfied registered defaults which a client have from £1,000 to £2,500.

Alongside this, the level of unsatisfied registered defaults for communication and utility bills was increased from £250 to £500, while the look back period for defaults was cut from three years to two.

Atom also uses technology like automated valuation models to provide a quick response for applications.

Head of mortgages at Atom bank, Richard Harrison, said: "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.

"We have made a host of significant improvements to our near prime criteria this year in order to better support these borrowers, who can be poorly served by mainstream lenders, and it’s clear that our range is striking a chord. We have seen a notable increase in interest over that time period, and we have achieved record levels of lending as more brokers become aware of our products.

"It’s vital that near prime borrowers are not unfairly penalised for past problems, and are supported not only through their home ownership journey but also on the path back to Prime status. We’ll continue to offer them a journey that is fast, easy and great value, and hope to see more brokers taking advantage of our offering."

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