Brokers are seeing growing demand for near prime mortgage products, with expectations that this trend will continue into 2026, a new poll by Atom Bank has revealed.

The survey, conducted during a webinar following the release of the bank’s second Near Prime Index report, found that 81% of brokers had seen an increase in clients with adverse credit histories or those unable to meet traditional credit scoring requirements over the past year.

While this was down slightly from 93% recorded in a previous webinar poll in December, confidence in future demand has strengthened significantly.

Almost nine in ten brokers (89%) said they expect to advise more clients on near prime products throughout 2026, up from 74% in the earlier survey.

Richard Harrison, head of mortgages at Atom bank, said brokers expect near prime demand to continue rising as more borrowers struggle with affordability pressures and higher mortgage costs.

"After the increases in near prime demand reported by brokers last year, the belief is there will be further growth to come. That demand comes from both those making their first step onto the housing ladder, and existing homeowners coming off fixed-rate deals and facing the prospect of much higher rates than anticipated as a result of the situation in the Middle East," said Harrison.

"With cost of living challenges continuing to feed through into borrower prospects, pushing more aspiring buyers outside of prime criteria, it’s crucial that the industry takes the time to better understand these borrowers and what they need in order to meet their homebuying dreams," Harrison added.

The webinar also explored the role of financial education after the Government confirmed plans to introduce it into the school curriculum. Brokers identified understanding the true cost of borrowing and how debt can escalate as the most important area for inclusion, followed by guidance on avoiding problem debt and improving awareness of credit scores and reports.

According to the report, first-time buyers now make up a larger share of brokers’ near prime clients, with Atom bank’s own data showing many near prime customers are taking their first step onto the property ladder. Here, brokers identified deposit requirements as the biggest obstacle for these borrowers and called for a wider range of higher loan-to-value products.

David Hollingworth, associate director at L&C Mortgages, added that brokers are already seeing more clients affected by past payment issues or limited credit histories.

"We know that brokers are already seeing increasing numbers of customers who can fall outside of mainstream prime criteria, whether because of payment issues in the past or a sparse credit file," said Hollingworth.

"With another surge in the cost of living expected it’s crucial for lenders to recognise this trend, and ensure near prime borrowers have access to funding, particularly first-time buyers. Saving for a deposit remains such a challenge that there’s real benefit in combining a more understanding approach to assessing creditworthiness with a broader range of higher LTV options."

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