Atom bank has improved affordability on its prime and near prime product ranges by increasing its loan-to-income (LTI) on loans up to 90% loan-to-value (LTV).

The increase is designed to help borrowers with household incomes between £45,000 to £60,000, with the increase in LTI enabling them to increase their maximum loan amount by between £23,000 to £31,000.

Atom’s prime range is for applicants who have had no defaults in the last 36 months, with no more than one default between 37 and 72 months ago.

Any unsatisfied defaults must have a combined value of no more than £500 per applicant.

The near prime range is designed to support borrowers with light adverse credit history or thin files.

The criteria includes 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 unsatisfied CCJs.

There must also be no mortgage arrears in the last 12 months, with no more than two months of mortgage arrears in the last 13 to 24 months.

Atom bank head of mortgages Richard Harrison says: “Affordability remains an issue for many borrowers and following feedback from brokers, we have made this improvement to enable applicants to borrow more across all our product ranges.”

“This new criteria aims to remove more barriers to home ownership, ensuring more borrowers can get onto, or move up, the housing ladder even if they have lower income and an imperfect credit history.”