More lenders lower rates amid market adjustments
Three specialist lenders – Atom bank, Market Harborough Building Society, and Suffolk Building Society – have announced significant rate reductions across their mortgage portfolios this week, offering borrowers improved access to funding amid ongoing market challenges.
Atom bank reduces near prime rates
Atom bank has implemented a 0.10% reduction across its Near Prime residential mortgage range, affecting two- and three-year fixed-rate products up to 85% loan-to-value (LTV). The cuts bring two-year fixed rates to 5.39% and three-year products to 5.24%, whilst five-year fixed rates remain unchanged at 5.14%.
The recent rate reduction is part of the bank’s strategy of providing competitive rates to borrowers with less-than-perfect credit histories bank. It has made multiple rate cuts throughout 2025.
Atom’s approach involves automatically upgrading Near Prime customers to Prime products when their credit positions improve. More than 70% of Near Prime customers have qualified for Prime products over the past 12 months.
The bank expanded its Near Prime criteria in 2024, doubling acceptable unsatisfied defaults to £2,500 and reducing the default look-back period from three to two years. Earlier this year, maximum LTV increased to 90%, broadening access for borrowers with credit issues.
“We are determined to provide borrowers with great value, even if they have experienced a temporary payment blip in the past,” said Richard Harrison, head of mortgages at Atom bank.
Market Harborough cuts standard rates
Market Harborough Building Society has reduced fixed rates by up to 0.20% across its residential solutions up to £3 million, including expatriate cases. Tier one fixed rates dropped by 0.15%, whilst tier two rates fell by 0.20%.
The specialist lender’s residential rates for cases up to £3 million now begin at 5.04% fixed and 5.64% variable for tier one cases, including a £1,495 product fee. Larger loan rates for cases up to £5 million remain unchanged.
“We’re making these rate reductions off the back of our recent changes, which saw us raising the loan threshold across our standard residential solutions from £2 million to £3 million to support higher-value borrowing,” said Iain Smith (pictured), head of mortgage distribution at Market Harborough.
Suffolk introduces 90% LTV product
Suffolk Building Society has launched a new 90% LTV discount mortgage whilst reducing interest-only residential products by up to 16 basis points. The new two-year deal offers a 4.95% discount rate with a maximum loan amount of £650,000, targeting first-time buyers and those with smaller deposits.
The society has narrowed the rate differential between capital-and-interest and interest-only products, providing greater choice for borrowers. Recent criteria changes increased maximum LTV from 50% to 70% when downsizing.
Interest-only rate reductions include 80% LTV two-year discount products falling to 4.85% and five-year fixed rates dropping to 5.09%.
“Interest only borrowers, who often fall into the ‘later life’ group, have long been underserved – facing age restrictions and limited options,” noted Charlotte Grimshaw, head of intermediaries at Suffolk Building Society.
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