United Trust Bank (UTB) has entered the first charge residential mortgage market after introducing its new mini-mortgage product .
The specialist bank has designed the product to enable customers to release equity in their unencumbered property for a variety of reasons, typically at loan sizes below standard minimum mortgage amounts and for customers that don't necessarily fit an automated underwriting process.
UTB's mini-mortgages are available from £5,000-100,000 and up to 75% LTV with repayment terms available from three to 30 years.
Loans are individually underwritten, and a wide range of construction types are considered.
There's no minimum credit score required and interest rates available are a selection of Bank of England base rate lifetime trackers and five-year fixed rates, none of which have early redemption charges, while broker and product fees can be added to the loan.
Other features of the mini-mortgage include:
• available on properties in England, Wales and mainland Scotland
• minimum property value £100,000
• hometrack AVM and drive-by valuations available subject to criteria
The product was soft launched in November 2017 through Ocean Finance and Chaseblue Loans and initially will be exclusively available through UTB's existing introducers with wider roll-out later this year.
“Reaction to the mini-mortgage range during the soft-launch phase has been excellent and I'm delighted that Ocean Finance has been on board from the start providing valuable insight to assist in shaping the product,” said Gareth Shilton, director at Ocean Finance.
Ben Gillespie, owner of Chaseblue Loans, added: “This is a great product and what's more, like UTB's second charge offering, it benefits from simple processes, a fantastic underwriting team and excellent BDM and training support.”
Buster Tolfree, commercial director of mortgages at UTB (pictured above), said UTB's products were designed with a consumer-first approach which allowed the bank's panel of introducers to give their customers greater choice in underserved market sectors.
“Following the success to date, I'm delighted that UTB's mortgage offering continues to develop into other mortgage sectors where there's a clear customer demand, but a distinct lack of choice.
“By using the same consumer-outcome based approach we apply to all of our lending, I'm confident that brokers will find the mini-mortgage a useful addition to their product tool kit.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Paula Purdy to leave Shawbrook
Shawbrook has announced that Paula Purdy will be leaving the specialist bank to pursue other opportunities...
Monese urges holidaymakers to shop around for their bank to save money abroad
Brits travelling abroad have been encouraged to save money by shopping around for bank accounts...
Tandem introduces healthy balance feature
Digital bank Tandem has announced the launch of a new healthy balance notification feature on its banking app...
The Access Bank UK joins Bacs
The Access Bank UK has been announced as the latest brand to join Bacs Payment Schemes Limited (Bacs)...
Nearly 75,000 SMEs supported through BBB programmes
The British Business Bank (BBB) has reported that the total stock of finance provided through its programmes in the last financial year rose by 33% to £12.25bn...
Close Brothers’ banking division reports 6.6% loan book growth
Close Brothers Group PLC has revealed that its banking division has seen a 6.6% growth in its loan book in the 11 months to 30th June 2018...
Leeds introduces two-year fixed rate BTL product
Leeds Building Society has launched a two-year fixed rate buy-to-let (BTL) mortgage product as part of a wider refresh of its 70% LTV BTL range...
Just 20% of Brits would opt for a challenger bank
Only 20% of UK residents would opt for a challenger bank if they were opening a new account today, according to research from Equifax...
Santander to form digital investment banking team
Banco Santander has announced that a new digital investment banking team will be formed within Santander Corporate & Investment Banking...
Metro Bank introduces developer portal
Metro Bank has launched a new developer portal for FCA-registered third parties wishing to build services on top of its APIs...
Wesleyan Bank appoints new head
Wesleyan Bank has appointed David Brownbill (pictured above) as its new head of indirect sales...