Am I eligible for a Near Prime mortgage?

Securing a mortgage can be challenging, especially if you don’t have a pristine credit history. You may have a deposit saved and ready to go, but many mainstream lenders can still be cautious about providing a loan to someone that they consider a risky prospect according to their criteria. Even if you’ve improved your credit record recently, past issues can still trip you up.

As a result, many people find themselves looking beyond mainstream lenders. This is where a Near Prime mortgage might help. They can offer more flexibility to customers who do not quite meet standard lending criteria.

In this blog post, we’re going to take a look at who is eligible for a Near Prime mortgage and what they might be able to offer you.

What does Near Prime mean when it comes to mortgages?

Near Prime describes borrowers who sit right in the middle of the credit scale. They are just between Prime (perfect credit) and sub-prime (low or thin credit). More lenders now realise that customers in the middle need real choices too and are offering mortgages to match their needs.

A Near Prime mortgage is designed for those with less-than-perfect credit. This means that the lender will consider applications from customers who sit just below the limit lenders use to identify someone who has a “strong” credit score. A Near Prime product will typically have a higher rate to account for the additional risk.

Who are Near Prime mortgages suitable for?

If you fall into the Near Prime category, you may have had some financial difficulties in the past or have a thin credit file. There might have been more serious problems that you’re now recovering from, or they may be some minor issues that have affected your credit recently. Either way, it means that your credit record falls just short of being considered Prime.

There are a few issues that can harm your credit score, but some of the most common are county court judgements (CCJs), defaults and missed payments. You can read our blog post on the factors that negatively affect credit for more detailed explanations.

Who is eligible for a Near Prime mortgage at Atom bank?

At Atom bank, our Near Prime mortgages are ideal if you’ve had financial difficulties but are working towards building up your credit record.

We offer both purchase mortgages and remortgages, so we can support you whether you’re buying a property or looking to get a better deal on your current home. They can help you if you’ve had the likes of a CCJ, default or missed payment on your history.

Below, you can find an in-depth look at what the eligibility criteria are for a Near Prime mortgage (up to 90% loan-to value (LTV)) at Atom bank.

Challenge	Eligibility Criteria
CCJs	You can apply if: • You haven’t had any CCJs registered in the last 12 months. • You have no more than four CCJs from the last three years. • Your CCJs are completely paid off, or the total unpaid amount is £1,000 or less.
Defaults	You can apply if: • You haven’t had any defaults registered in the last 12 months. • You have up to four defaults registered between 13 to 24 months ago (there’s no limit on older ones). • Your defaults are fully paid off, or the total unpaid amount is £2,500 or less. • Note: We allow an extra £500 for unpaid mail order, communications and utilities defaults.
Missed Payments	You can apply if: • You don’t owe any missed payments when you apply. • You haven’t missed more than two mortgage payments in the last 24 months. • You have been completely clear of mortgage arrears for the last 12 months.
Other Criteria	You can apply if: • You haven’t missed more than two monthly payments on any single unsecured account (like loans, credit cards, mail order or utilities) in the last 12 months. • You haven’t taken out any payday loans in the last 12 months. • Any past bankruptcy or Individual Voluntary Agreement (IVA) happened six or more years ago and is fully complete.

Smaller deposit? Near Prime may still be able to help

If you have a smaller house deposit of around 5%, we may also be able to help.

We have specialist 95% loan-to-value (LTV) Near Prime lending criteria that are designed to help if you have some past credit issues and a smaller lump sum to put towards a property.

Challenge	Eligibility Criteria
CCJs	You can apply if: • You haven’t had any CCJs registered in the last 36 months. • You have no more than one CCJ registered between 37 to 72 months ago. • Your CCJs are completely paid off, or the total combined value of the original judgment is £500 or less.
Defaults	You can apply if: • You haven’t had any defaults registered in the last 12 months. • You have no more than one default registered between 13 to 36 months ago. • Your defaults are fully paid off, or the total unpaid amount is £500 or less per applicant. • Note: There’s no limit on defaults over 36 months old or those that are fully paid off.
Missed Mortgage Payments	You can apply if: • You don’t owe any missed mortgage payments when you apply. • You haven’t missed more than two mortgage payments in the last 24 months (there’s no limit if they are over 24 months old). • You have been completely clear of mortgage arrears and mortgage defaults for the last 12 months.
Other Criteria	You can apply if: • You haven’t missed more than one monthly payment on an unsecured loan or more than two monthly payments on a credit card in the last 12 months. • You are an employed applicant (our 95% tier is not available if you are self-employed). • You haven’t taken out any payday loans in the last 12 months. • Any past bankruptcy or Individual Voluntary Agreement (IVA) happened six or more years ago and is fully complete. • Note: There’s no limit on unsecured missed payments older than 12 months.

How do I apply for a Near Prime mortgage with Atom bank?

Does a Near Prime mortgage with Atom sound like it could help you? Then it’s worth speaking to an independent mortgage broker to explore your options. You can use the find a broker tool on our Near Prime mortgages page page to connect with one that works with Atom located near you.

We work exclusively with mortgage brokers to make sure that you can always get advice when you’re looking for a mortgage, whether you end up applying with us or with another lender. Read our guide to the [the benefits of using a broker](/mortgages/mortgage-knowledge-hub/benefits-of-mortgage-brokers/ to find out more.

Remember: Near Prime mortgages typically have a higher rate than Prime products and are still subject to eligibility criteria and underwriting decisions.

Even if you think Near Prime isn’t quite the right product for you, it’s worth taking a look at the rest of our mortgages, including our first-time buyer and moving home mortgages, as well as our remortgages.

YOU COULD LOSE YOUR HOME IF YOU DON’T KEEP UP YOUR MORTGAGE REPAYMENTS