Brokers have called for greater investment in financial education after seeing an increase in near prime enquiries during 2025.
Research from Atom Bank, which polled brokers on their experiences, found 93 per cent had seen an increase in clients with either adverse credit or who would fail traditional credit scores over the past year.
This is a trend they predicted to continue, with 74 per cent expecting a further jump in near prime business in 2026.
‘Near prime’ refers to borrowers who have credit profiles slightly below ‘prime’ (excellent credit) but better than poor credit.
Consequently, brokers called for improved financial education in order to help the next generation of borrowers avoid succumbing to the same credit mistakes.
Atom Bank head of mortgages, Richard Harrison, said: “Near prime is now a mainstream part of the market, with our research highlighting the growing role it plays — and looks set to play — in the daily workloads of brokers across the country.
“What came through clearly in our webinar is that customers need more support and better financial education to help them understand borrowing, avoid unnecessary credit blips and navigate the mortgage process confidently.”
A webinar from Atom Bank, at which the survey was conducted, explored the increasing scale of the near prime market.
Panellists noted many customers experiencing credit blips are middle-to-high income earners affected by life events or short-term financial pressures.
Data from Atom Bank’s near prime index revealed a “significant proportion” of these borrowers have household incomes of between £75,000 and £150,000, demonstrating that adverse credit is not confined to lower-income households.
Panellists also noted that customers often misunderstand the long-term impact of minor credit issues, and better financial education could prevent many from falling into avoidable difficulties.
Technology was identified as a “key enabler” for brokers managing near prime cases, with panellists noting that integrating adverse credit data earlier in the research process leads to more accurate product sourcing, and reducing adviser workload.
“Demand for near prime lending is only likely to increase, as we see the continued ramifications of the budgeting challenges of recent years, so it’s crucial that lenders provide clear pathways back to prime products as customers’ circumstances improve,” Harrison added.
tom.dunstan@ft.com
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