The bank says the expansion to cover smaller deposits is in direct response to broker feedback.

The 95% Near Prime range is designed to support borrowers with light 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 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.

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.

Alongside the launch, Atom bank has also reduced rates on its existing Near Prime range, spanning 60% to 90% LTV, by 0.10%, with rates now starting at 5.29%.

Atom bank head of mortgages Richard Harrison says: “Brokers have been calling for more options for Near Prime borrowers with modest deposits, so I’m certain this launch will be well received. We have consistently listened and acted to refine our Near Prime proposition, ensuring it supports the types of cases brokers are seeing 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 deliver practical solutions.”